{"id":44002,"date":"2025-10-02T11:35:33","date_gmt":"2025-10-02T11:35:33","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/10\/02\/tesco-lifts-profit-forecast-as-summer-price-cuts-clubcard-boost-sales\/"},"modified":"2025-10-02T11:35:33","modified_gmt":"2025-10-02T11:35:33","slug":"tesco-lifts-profit-forecast-as-summer-price-cuts-clubcard-boost-sales","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/10\/02\/tesco-lifts-profit-forecast-as-summer-price-cuts-clubcard-boost-sales\/","title":{"rendered":"Tesco lifts profit forecast as summer, price cuts, Clubcard boost sales"},"content":{"rendered":"
<\/div>\n

Tesco, Britain\u2019s largest supermarket group, raised its full-year profit forecast on Thursday after a strong first half in which hot weather and competitive pricing helped it win market share from rivals.<\/p>\n

The group, which holds 28.4% of Britain\u2019s grocery market, said it now expects adjusted operating profit for the 2025\/26 year in the range of \u00a32.9 billion to \u00a33.1 billion ($3.9\u2013$4.2 billion). <\/p>\n

That compares with earlier guidance of \u00a32.7 billion to \u00a33.0 billion. Tesco made \u00a33.13 billion in the previous financial year.<\/p>\n

First-half adjusted operating profit rose 1.5% to \u00a31.67 billion, supported by a 4.9% rise in UK like-for-like sales. <\/p>\n

Revenue for the period came in at \u00a336.04 billion, up from \u00a334.77 billion a year earlier.<\/p>\n

Tesco’s share price rose by over 1.7% following the announcement. <\/p>\n

Tesco gains market share from rivals<\/h2>\n

The supermarket chain said the gains reflected a strong customer response to price cuts and promotions, alongside an unusually long spell of warm weather in the summer months. <\/p>\n

Tesco has reduced prices on 6,500 products, with an average cut of 9%, and has matched discounter Aldi\u2019s prices on more than 600 items.<\/p>\n

Industry data from market researcher Worldpanel last month showed Tesco capturing more market share than any other UK grocer. <\/p>\n

CEO Ken Murphy said the performance was a result of \u201cdecisive action we took at the start of the year to further invest in value, quality and service.\u201d<\/p>\n

Shares in Tesco have risen 17% this year, buoyed by stronger-than-expected performance. <\/p>\n

Analysts at RBC noted that the company\u2019s strong top-line growth and market share gains boosted free cash flow, adding that food inflation\u2014though higher than expected\u2014had limited impact on sales volumes.<\/p>\n

Competition remains intense<\/h2>\n

Despite its gains, Tesco acknowledged that competition remains tough. <\/p>\n

The company\u2019s main rivals have been under pressure, with Asda losing share despite earlier pledges of sustained price cuts. <\/p>\n

While Tesco had initially expected profit to decline this year due to increased investment, no price war has materialised.<\/p>\n

Analysts say Tesco\u2019s heavy promotion of its Clubcard loyalty scheme, which offers discounts to members, has also been key to winning customers.<\/p>\n

At the same time, the supermarket is expanding digital operations, including its online Marketplace platform and retail media services, to diversify growth.<\/p>\n

CEO urges pro-growth budget<\/h2>\n

Murphy cautioned, however, that households remain under financial strain and that consumer confidence is being hit by concerns over the government\u2019s upcoming budget on November 26.<\/p>\n

\u201cThey are concerned. They are worried about the budget, they\u2019re worried about the economic outlook, so it is definitely a thing,\u201d he said.<\/p>\n

Murphy called on the government to prioritise measures that would support jobs and growth. <\/p>\n

\u201cWhat we\u2019d love to see from the next budget is a budget that\u2019s pro-growth and pro-jobs, which, as a result, will help customers with the cost of living,\u201d he said.<\/p>\n

Last year\u2019s budget added to employer payroll costs, leaving Tesco with hundreds of millions of pounds in additional expenses. <\/p>\n

Murphy warned that any similar measures this year could weigh on the sector\u2019s ability to sustain investment and price cuts.<\/p>\n

The post Tesco lifts profit forecast as summer, price cuts, Clubcard boost sales<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Tesco, Britain\u2019s largest supermarket group, raised its full-year profit forecast on Thursday after a strong first half in which hot weather and competitive pricing helped it win market share from rivals. The group, which holds 28.4% of Britain\u2019s grocery market, said it now expects adjusted operating profit for the 2025\/26 year in the range of <\/p>\n","protected":false},"author":1,"featured_media":44003,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-44002","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/44002","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=44002"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/44002\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/44003"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=44002"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=44002"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=44002"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}