Following today’s release of Tesco’s figures for the 13 weeks ending 24 May 2025; Aliyah Siddika, Retail Analyst at GlobalData, a leading data and analytics company, offers her view: “Tesco is off to a strong start this year, solidifying its position as market leader and capturing more share by enhancing value credentials, improving non-food categories, and boosting its premium offer. The grocer reported 5.3% growth in group sales for the 13 weeks ending 24 May, fuelled by a robust 5.7% rise in UK sales. Notably, online sales have surged by 11.5% in the UK as the grocer capitalises on growth in the online food market and continues to improve its online proposition, for example, through the recent relaunch of F&F clothing online. Given this impressive performance, Tesco’s profit guidance remains unchanged, with expectations set between £2.7bn and £3.0bn. However, if Q1 momentum is maintained, it would be no surprise to see an upward revision later in the year.
“The food division remains a cornerstone of Tesco’s success, with food sales in its core UK market rising by 5.9%. Bolstering this performance is the grocer’s pricing initiatives, including the Aldi Price Match on over 600 lines and 9,000 Clubcard Prices deals each week. By focusing on competitive pricing, Tesco has enhanced customers’ perception of value and has solidified its reputation as a preferred destination for high-quality food at affordable prices. Tesco’s Finest range has also significantly contributed to its success, with sales from this line rising by 18.0% year-on-year. This range appeals to customers seeking unique or higher-quality food options, preventing them from switching to competitors like Marks & Spencer for similar products and allowing shoppers to trade up and down within the same retailer.
“In addition to its food success, Tesco’s non-food division has also performed well in the UK, with sales increasing by 6.2% (excluding toys). Although this increase is against a weak comparative backdrop, it highlights the success of Tesco’s F&F home launch at the end of 2024 and the return of F&F clothing online in May. These initiatives were strategically timed, as the online clothing market is projected to surpass offline sales this year. Both the clothing and home product ranges feature trendy items designed to appeal to a diverse customer base, offering everything from athleisure targeted at younger consumers to children’s school uniforms.”
