LONDON (Reuters) -Britain’s biggest supermarket group, Tesco, reported a 4.6% rise in underlying quarterly sales in its home market. Tesco reiterated its guidance, stating it was “well positioned” for the balance of the year.
CEO Ken Murphy said Tesco’s market share was growing more than at any other time in the past two years.
Its market share rose 50 basis points to 27.6% in the 12 weeks to May 12 year on year, according to market researcher Kantar.
“Customers are switching to us from other retailers, shopping more often and with larger baskets,” stated Murphy. He noted that sales trends were consistent with the group’s expectations.
While Tesco’s update showed positive trends, recent UK retail data has been subdued. Wet weather and cost-of-living pressures in May notably affected consumer spending on larger ticket items like furniture.
Published on June 4, one survey indicated the weakest spending growth in over three years. This outcome contrasts with Prime Minister Rishi Sunak’s message of economic rebounding before a July 4 national election.
Tesco is seeing benefits from its strategy of price-matching Aldi on key items. Additionally, its Clubcard loyalty scheme, offering lower prices to members, has bolstered its popularity.
These programmes are being financed by taking costs out of the business, with a further 500 million pounds ($637 million) of savings targeted for 2024/25.
By leveraging data analytics and customer insights, Tesco has tailored its offerings to meet evolving consumer needs, thereby further solidifying Tesco’s market share in the competitive retail market.
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