Tesco has hailed “strong” Christmas trading as it said it was boosted by investment to improve value as it sought to fend off competition from discount rivals Aldi and Lidl.
Boss Ken Murphy cheered the retailer’s efforts to support shoppers “dealing with tough times this Christmas” amid the ongoing cost-of-living crisis.
The UK’s largest supermarket group revealed that group like-for-like sales, excluding fuel, grew by 7.9% over the six weeks to January 7, compared with the same period last year.
It said this came after 5.7% growth over the quarter to November 26.
The retailer said this growth included “particular strength” in fresh food, with 8.1% growth, as shoppers continued to spend on essentials amid pressure on household budgets.
The group also highlighted a 7.4% increase in sales volume of its low everyday prices range after launching a “price lock” commitment on these products in October.
The firm has pumped significant investment into pricing over the past year, including through its Aldi price match campaign, covering more than 600 items.
In the UK, the Tesco supermarket business recorded 7.2% growth over the Christmas period.
The group was boosted by an 11.7% jump at its Booker wholesale operation, which continued its recovery from the pandemic amid a stronger performance for hospitality customers.
Mr Murphy, chief executive of Tesco, said: “I’m really pleased with our performance over this period – particularly the further strong growth at Christmas on top of the exceptional growth of the last few years.
“I’m extremely proud of the way Tesco has stepped forward to help customers dealing with tough times this Christmas.
“By delivering relentlessly on the strategic priorities that we set out 18 months ago, we have made sure that customers know that they will benefit from great value and quality in every part of their basket, however they choose to shop with us.”
Tesco said it expects to post retail-adjusted operation profits of between £2.4 billion and £2.5 billion as a result of its performance.
