Tesco’s market share on the up despite a mounting challenge from the chasing pack

Mark Crouch, analyst at investment platform eToro, says: “Tesco has maintained its profit guidance in this morning’s trading statement as underlying UK sales for the supermarket rose by 4.6% in the first quarter.”

“Despite higher inflation vexing the sector, Tesco has stood fast and knuckled down on quality and value. By utilising the Clubcard scheme and offering a wider range of food products, Tesco managed to increase their market share in 2024.

“While the cost-of-living crisis is yet to subside, consumers are inevitably trading down to cheaper items. This is nowhere more evident than the rise of discount chains Aldi and Lidl. The German supermarkets are fast becoming major rivals of Tesco, with Aldi breaking into the so called “big 4” and rapidly gaining ground on Asda in the third spot.

“For now though, Tesco commands the top spot, and by some distance. Tesco’s healthy cash position further underlines the strength of the business. Upping their share buyback scheme by £1bn in April and offering an attractive dividend, shareholders are reaping the rewards of Tesco’s hard work.”