Bulletin: Tesco PLC?s Positive Sales Momentum Expected To Support Strong Cash Flow Generation

This report does not constitute a rating action. LONDON (S&P Global Ratings) Jan. 13, 2025--The group reported third quarter and Christmas sales results with revenue of its food core business in the U.K. increasing by 3.1% and 4.4% in Ireland over the 19-week period to Jan. 4, 2024. The group has continued to improve its positioning with its market share rising to 28.5% (up by 78 basis points from last year) according to Kantar Worldpanel for the four weeks to Dec. 29, 2024, their highest level since 2016. This was mainly driven by volume growth in a period where inflation in the food retail space returns to more normalized levels. We think that the group has successfully positioned itself across

...January 13, 2025 This report does not constitute a rating action. LONDON (S&P Global Ratings) Jan. 13, 2025--The group reported third quarter and Christmas sales results with revenue of its food core business in the U.K. increasing by 3.1% and 4.4% in Ireland over the 19-week period to Jan. 4, 2024. The group has continued to improve its positioning with its market share rising to 28.5% (up by 78 basis points from last year) according to Kantar Worldpanel for the four weeks to Dec. 29, 2024, their highest level since 2016. This was mainly driven by volume growth in a period where inflation in the food retail space returns to more normalized levels. We think that the group has successfully positioned itself across the full range, with strong price positioning thanks to its Clubcard, to the higher-end offering with Finest range (sales up by 15.5% in the period). Its Booker business performed well with improving performance over the Christmas period (+1.4% for the six weeks to Jan. 4, 2025,...

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