Tesco sales growth contributes to continued market share gains in Q1
Tesco states that its first quarter Irish like-for-like sales rose by 5.5% to €907 million (£772 million)
Print13 June 2025
Tesco has reported an increase in underlying sales growth in its first quarter, gaining market share from rivals, which indicates that improvements in value, product quality, and service have resonated with consumers.
The group, whose share of Britain’s grocery market has grown this year to 28%, a level not seen since 2016, said today its UK like-for-like sales rose 5.1% in the 13 weeks to May 24, having been up 4.3% in the previous quarter.
In Ireland, its like-for-like sales rose 5.5% in the 13 weeks to May 24.
Food sales were up 5.8%, supported by continued investment in its fresh food range.
The retailer said it saw growth across all channels in Ireland, led by online, with sales up 19.8% on the back of the launch of same-day Click & Collect and home delivery last year.
Tesco went on to state that its group sales were £16.4 billion, up 4.6% on a like-for-like basis.
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“Our continued commitment to delivering great value, quality and service for our customers has contributed to like-for-like sales growth across all parts of the Group,” CEO Ken Murphy said.
Murphy would additionally caution, however, that the market “remains intensely competitive”.
Tesco said it still expected to report adjusted operating profit of between €3.1 billion (£2.7 billion) and €3.5 billion (£3 billion) in the year ending February 2026, down from the €3.6 billion (£3.13 billion) achieved in 2024/25.
Most analysts think Tesco’s strategy of matching the prices of discounter Aldi on hundreds of key items, together with heavy promotion of its Clubcard loyalty scheme, which provides lower prices for members, is working well.
Tesco CEO Geoff Byrne would go on to comment on the matter, “With Tesco retaining its focus on what’s most important to customers, we’ve maintained strong momentum in the market resulting in additional growth once again this quarter.
“Our award-winning own label products continue to gain in popularity, while our partnerships with local Irish suppliers ensure customers have access to the very best products on the market.
“Our commitment to deliver genuine value through Clubcard Prices and Aldi Price Match is assuring customers that they need go no further in unlocking affordability.
“Online shopping remains a strong growth area for Tesco Ireland, while the launch of our innovative on-demand rapid delivery service Whoosh has been very well received in Dublin since its launch in March, with average delivery values similar to those of in-store basket shops.”
Tesco has been becoming increasingly digital, stepping up personalised engagement with customers and developing growth avenues such as its online Marketplace platform and retail media.
Shares in Tesco are up a whopping 27% over the last year.
Tesco’s update bucked wider industry data published earlier this week, showing British consumer spending on non-food items lost momentum in May as households’ confidence in their personal finances fell.
Read more: Tesco Ireland appoints Geoff Byrne as new CEO
© 2025, ShelfLife by Peter Murphy
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