UK retail giant Tesco has reported a strong Christmas for sales, despite growing cost pressures and supply chain challenges. Tesco reported a 2.7% rise in like-for-like sales for its core UK and Ireland grocery business during the six weeks to 8 January compared to the same period last year. This prompted a rise in its profit outlook for the second time in four months, with profits forecast to reach from £2.5 billion to £2.6 billion. Sainsbury’s announced a similar experience, thanks to its focus on value.
Tesco said that its large stores and convenience outlets performed particularly well and it also has its highest share of the home delivery market since the Covid-19 pandemic began with an average 1.2 million orders per week. In the 19 weeks to January 8, sales were up 8.6% on two years ago and 2.4% higher than a year ago.