Tesco has delivered a robust Christmas trading performance, leading the UK's largest supermarket to forecast a full-year adjusted operating profit of approximately £3.1 billion.
Festive Sales Surge and Market Share Gains
The retail giant reported a 3.3% increase in like-for-like sales across the UK and Ireland during the crucial six-week period ending on January 3, 2026. This growth was driven by a 3.2% rise in the UK and a stronger 3.8% boost in Ireland. Sales momentum had been building, with a 4% increase also recorded in the 13 weeks leading up to November 22.
This strong performance has solidified Tesco's dominance. According to data from Worldpanel, its share of the UK grocery market grew to 28.7% in the three months to December 28. This figure swelled to an impressive 29.4% during the peak Christmas trading period, marking its highest market share in over a decade.
Nostalgic Branding Returns in Price War Push
In a significant strategic move, Tesco is officially reviving its iconic blue and white striped design, a symbol of value first introduced in 1993 and axed in 2012. The updated pattern will feature alongside its red 'Everyday Low Prices' logo as part of a major marketing campaign.
The return is a direct play in the ongoing price competition with discounters like Aldi. Tesco stated the stripes will "symbolise value at Tesco" and highlight low prices on leading branded products. This week, it pledged to keep the cost of 3,000 branded items "consistently low" under this initiative.
Leadership and Customer Focus
Chief Executive Ken Murphy credited the success to sustained investment. "Our investments in value, quality and service drove further gains in customer satisfaction and strong growth in fresh food," he said. He also acknowledged the intense market climate, noting that "value remains a priority for customers."
Ashwin Prasad, Tesco UK Chief Executive, emphasised the commitment to branded goods, naming favourites like Heinz baked beans and PG Tips. "Customers can be sure that they are getting consistent great Tesco value on the branded items they love," he stated.
The combined effect of strong festive trading, increased market dominance, and a clear value-focused strategy positions Tesco for a highly profitable year, while signalling an aggressive stance in the UK supermarket price war.
