Following today’s release of Tesco’s figures for the 26 weeks ending 23 August 2025; Eleanor Simpson-Gould, senior analyst at GlobalData, a leading data and analytics company, offers her view: “Tesco’s solid H1 performance demonstrates that the grocer is thriving in a challenging and highly competitive landscape. Like-for-like growth of 4.9% in the UK market bolstered group performance (up 4.3% like-for-like), outperforming ROI, Booker and Central Europe operations. Tesco is setting the pace in the UK food & grocery market and is effectively aligning its core product offering across food and non-food segments. If it maintains this momentum, it will secure further market share gains in the second half of the year. Despite operating profits falling 0.6% for the group, Tesco has upgraded its profit outlook to between £2.9bn and £3.1bn for FY2025/26, which has boosted the grocer’s share price by 4% this morning, reflecting market confidence in this upward revision.
“Tesco’s UK food sales increased by 5.7%. Although inflation contributed to this figure, the market leader outperformed the UK food & grocery sector, which GlobalData forecasts grew by around 3% during the same period. Tesco’s strong food growth during the period continues to be underpinned by the appeal of its premium Finest range, which achieved a 16.0% uplift in the first half. Further bolstering Tesco’s success in food is its intense focus on Clubcard prices, which have appealed to consumers battling rising cost pressures. As Tesco enters the golden quarter, it does so on a solid footing. Tesco must leverage the success of its Finest range ahead of Christmas 2025 by intensifying its marketing efforts around these high-value offerings. The grocer must emphasise the quality and value for money of its range as a luxury, but affordable choice, to resonate with consumers’ desire for festive indulgence.
“Tesco’s non-food performance highlights its ability to capture discretionary spending. In H1, clothing sales achieved a commendable 7.8% like-for-like growth, driven by a strong Spring/Summer campaign in womenswear and childrenswear. The inclusion of its F&F clothing range on its marketplace in May 2025 will have underpinned this performance and significantly widened customer reach. In contrast, Tesco’s home segment experienced a 2.1% decline in like-for-like sales. However, this was due to Tesco no longer recognising toy sales within this segment following its move to a commission-based partnership model with The Entertainer. Excluding toys, the home segment reported a solid 3.1% growth, propelled by the F&F home lifestyle range, which has underscored Tesco’s resilience in adapting its non-food proposition.”
