Tesco PLC (LSE:TSCO) said its full-year profit and cashflow targets remained unchanged after a record level of Christmas sales.
Like-for-like sales swelled 3.8% for the UK’s largest supermarket group, as demand grew in the six weeks to January in the UK, Ireland, Central Europe and for its Booker wholesale arm.
UK and Irish sales rose 3.7% in the festive period, up from 2.8% in the fiscal third quarter, with the UK alone seeing festive LFL sales accelerate to 4.1% from 3.8% in the third quarter.
Chief executive Ken Murphy hailed Tesco reaching its highest market share since 2016, which he said was driven by further improvement in customer satisfaction and investment in “value, quality and service” to position the grocer as the cheapest among the non-discounters for the past two years.
He said the group had also ensured that more than half of the Christmas range was “new or improved” and an extra 28,000 staff were hired over the Christmas period.
UK food sales rose 4.7% over the full 19 weeks to 4 January, primarily driven by volume growth, while non-food sales excluding toys increased 4%, with growth in both home and clothing.
Full-year guidance for an adjusted operating profit of “around £2.9 billion” remained, and similarly for retail free cash flow within the ongoing guidance range of £1.4-1.8 billion.