Tesco, the UK’s largest supermarket group, has reported strong Q3 and Christmas trading for the 2025/26 financial year, driven by gains in fresh food, continued price investment, and growing demand for online and convenience services.
The retailer said like-for-like sales increased 3.7% across the 19-week period to 3 January 2026, covering both Q3 and the Christmas trading window. Group like-for-like sales increased 2.9%, reflecting steady momentum across most operating regions despite intense market competition.
UK Supermarket Performance leads Growth
In the UK, Tesco delivered like-for-like sales growth of 3.7%, achieving its highest market share in more than a decade. The group said performance was supported by sustained investment in value, availability, and service across the full shopping trip.
Fresh food was a key growth driver, with UK fresh food like-for-like sales up 6.6%, reflecting price positioning and ongoing quality improvements. Tesco also reported strong Christmas demand for own-label, supported by the launch of 340 new and improved seasonal products, including 180 additions to the Finest range.
Finest delivered double-digit sales growth over the period, while party food ranges recorded particularly strong demand.
Republic of Ireland Delivers Fourth Year of Share Gains
In the Republic of Ireland, like-for-like sales increased 4.6% over the 19-week period. Tesco said fresh food again led performance, with food sales up 5.2% year-on-year.
Market share rose 41 basis points to 24.0%, marking a fourth consecutive year of market share gains. The retailer also highlighted recognition for product quality and innovation, including 26 Blas na hÉireann gold awards.
Five new stores opened during the period, alongside further rollout of Whoosh rapid delivery, with expansion in Dublin and new launches in Cork and Galway.
Online, Convenience, and Retail Media Momentum
Tesco reported continued momentum across digital and convenience channels during the festive period:
Online sales grew double-digit year-on-year
More than 250,000 new customers used Whoosh during the period
An additional 100,000 online delivery slots were added in the final week before Christmas, enabled by AI-powered scheduling tools
The group also expanded its retail media operations, including new in-store screens across Booker and One Stop and additional video formats on Tesco.com and the Tesco app. Tesco was named Media Brand of the Year at the Media Week Awards 2025.
Booker and Central Europe Mixed But Stable
At Booker, like-for-like sales declined 1.3%, reflecting weakness in tobacco and the exit of a lower-margin national contract. Core catering sales grew 2.4%, supported by strong performance from specialist wine and spirits merchant Venus.
In Central Europe, like-for-like sales rose 1.0%, with growth supported by fresh food, online expansion, and continued strength in the Finest range. Online like-for-like sales in the region increased 14.3%.
Outlook Remains Confident Despite Competitive Pressure
Following the strong Christmas performance, Tesco said it now expects FY 2025/26 group adjusted operating profit to be delivered at the upper end of its £2.9bn to £3.1bn guidance range. Free cash flow is expected to remain within the £1.4bn to £1.8bn medium-term guidance range.
The retailer said competition across the UK grocery market remains intense, with value continuing to be a priority for customers. Tesco recently expanded its Everyday Low Prices programme to more than 3,000 branded products, alongside Aldi Price Match on over 650 lines and continued Clubcard promotions.
Tesco will report its full preliminary results on 16 April 2026.
Editor’s note: This article is based on Tesco PLC’s Q3 and Christmas Trading Statement for FY 2025/26, released on 8 January 2026. All figures and performance details are taken directly from Tesco’s official investor and media disclosures.
