Tesco and Sainsbury's to reveal Christmas sales figures amid pressure on shoppers' budgets
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The UK's largest supermarket groups are set to reveal their Christmas period performance next week, amid mounting pressure on shoppers' finances. Tesco and Sainsbury's will issue third-quarter updates for investors, which will include sales figures for the weeks leading up to Christmas. Both retailers are expected to report another strong period of growth, thanks to recent pricing investments that have attracted more customers.
However, the updates will also be overshadowed by a range of cost increases linked to the autumn Budget, which may impact their profitability in 2025. Tesco, the UK's largest bricks-and-mortar retailer, will update its shareholders on Thursday, January 9.
In its previous update in October, Tesco executives stated that consumers were in "reasonably good shape" approaching Christmas, with cuts to food prices driving strong sales volumes. Overall sales across the group increased by 4% to £31.5bn in the 26 weeks to August 24, compared to the same period last year.
This growth occurred despite a decline in food and drink inflation. Nevertheless, consumers continue to face significant financial pressures, with millions experiencing rent and mortgage hikes, as well as higher utility costs. As a result, Tesco has maintained its focus on pricing, investing heavily in its Aldi price match to win over customers from its German discount rivals and offering more deals to Tesco Clubcard members.
Last month, industry data from Kantar experts estimated that Tesco's sales grew by 5.2% over the 12 weeks leading up to December 1. This growth significantly outpaced the wider grocery market, which saw a 2.4% increase, allowing Tesco to further expand its market share.
