Updated
Updated · Financial Times · Jun 18
Tesco Posts 1.8% UK Q1 Sales Growth as Market Share Hits 28%
Updated
Updated · Financial Times · Jun 18

Tesco Posts 1.8% UK Q1 Sales Growth as Market Share Hits 28%

3 articles · Updated · Financial Times · Jun 18

Summary

  • UK like-for-like sales rose 1.8% to £13.4 billion in the three months to May 30, missing roughly 2.2% analyst forecasts and sending Tesco shares down 2.5% in London morning trade.
  • Ken Murphy blamed weaker consumer sentiment on Middle East war fears, while also citing tough year-ago comparisons and poor spring weather that curbed grocery spending.
  • Tesco still said its UK market share reached 28%—its highest in more than a decade—but analysts warned gains could become harder as Asda stabilises and rivals keep cutting prices.
  • The group maintained its cautious full-year outlook, guiding for £3 billion to £3.3 billion in adjusted operating profit as war-related inflation and pressure on disposable incomes cloud the UK grocery market.

Insights

Is Tesco's sales miss a company failure or the first domino in a new UK recession?
Could Tesco's secret pricing tech help shoppers, or will it just deepen the cost-of-living crisis?
With fuel costs erasing food savings, is the UK consumer's budget about to collapse?