Q3 AND CHRISTMAS TRADING
STATEMENT 2024/25.
Like-for-like sales (exc. VAT,
exc. Fuel)
Q3
covers the 13 weeks to 23 November 2024 and Christmas covers the 6
weeks to 4 January 2025
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Q3
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+
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Christmas
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=
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19 weeks
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UK
& ROI
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+2.8%
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+3.7%
|
|
+3.1%
|
|
UK
|
+3.8%
|
|
+4.1%
|
|
+3.9%
|
|
ROI
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+4.2%
|
|
+4.8%
|
|
+4.4%
|
|
Booker
|
(2.6)%
|
|
+1.4%
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|
(1.3)%
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Central Europe
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+2.8%
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+4.7%1
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+3.5%
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|
Retail
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+2.8%
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+3.8%
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+3.1%
|
Ken
Murphy, Chief Executive:
"I am very proud of the entire Tesco
team and the way we served customers this Christmas. We
invested to bring the best value, quality and service to everyone,
no matter how or where they shopped with us.
As a result, we delivered our biggest ever
Christmas, with continued market share
growth and switching gains.
Our strong performance reflects the
investments we have made, positioning Tesco as the UK's cheapest
full-line grocer for over two years, improving quality across all
our ranges, with more than half of this year's Christmas range new
or improved, and providing the best experience for our customers
in-store and online, supported by an extra 28,000 colleagues over
the Christmas period.
I would like to say a huge thank you
to everyone at Tesco for their hard work in delivering a great
Christmas. As we start 2025, we look forward to continuing to
offer our customers the very best products and experience at
Tesco."
Performance highlights2.
UK:
Highest market share since 2016 driven by further improvement
in customer satisfaction
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•
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Continued volume growth ahead of the
market; value market share up +78bps to 28.5%3, 19
consecutive periods of share gains; net switching gains from
full-line grocers, premium retailers and limited-range
discounters4
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|
•
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Brand perception +226bps;
improvements in all drivers, including value (+265bps) and
recommend (+385bps)5
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•
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Further cementing our position as
cheapest full-line grocer6; traditional Christmas dinner
available at a 12% lower price year-on-year, helping to feed the
nation's Christmas spirit regardless of
budget7
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|
•
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Food sales up +4.7%, primarily
driven by volume growth across the period, with a particularly
strong contribution from fresh food; non-food sales (exc. toys) up
+4.0%8, with growth in both home and clothing
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•
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Over 350 new or improved Christmas
products; quality perception up +100bps, growing ahead of the
market5; won 78 festive product awards, including Free
From Christmas 'Range of the Year'
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•
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Finest sales up +15.5%; over 300
Finest festive products including expanded Finest Chef's Collection
range
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•
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Personalised 'Clubcard Challenges'
offered to 10 million customers across the festive period,
contributing to record level of digital engagement
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•
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Strong growth in online, with sales
up +10.8% and market share up +122bps9; over 1.2 million
Tesco Whoosh orders placed across the Christmas period
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•
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Our Winter Food Collection saw 1.9
million meals donated to foodbanks by customers and
colleagues
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ROI: Fresh food performance drives strong volume growth
with continued share gains
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•
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Continued growth in market share, up
+40bps10, delivering 34 consecutive periods of
gains
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•
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Fresh volume growth +2.1%, supported
by ongoing rollout of 'fresh first' refresh programme
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|
•
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Investments in quality and
innovation recognised with 21 Blas na hÉireann (Taste of Ireland)
gold medals
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•
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Online sales up +17.1%, driven by
launch of same-day Click & Collect and home delivery
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Booker: Strength in core catering and retail offset by
tobacco market decline and Best Food Logistics
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•
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Core catering growth of +2.8%, with
volume growth supported by further availability improvements and
value investments, including over 800 prices locked from October
2024 to January 2025
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•
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Core retail growth of +1.3%; our
symbol brands continue to perform well despite a subdued market
backdrop; further improvement in customer satisfaction
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•
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Overall Booker performance of (1.3)%
reflects continued decline in the tobacco market and weakness in
parts of the fast-food market serviced by Best Food
Logistics
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Central Europe: Improved customer satisfaction and
volume growth drives positive like-for-like
momentum
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•
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Customer satisfaction improvements
ahead of the market in all countries, driven by value
perception11
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•
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Food sales up +3.7%, with a strong
contribution from fresh food as customers responded to investments
in quality, including the introduction of further Finest
products
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•
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Non-food sales up +1.8%, driven by
general merchandise
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Outlook.
The ongoing investments in our
customer offer continue to drive volume momentum and set us up well
to deliver long-term growth. As a result, we continue to
expect to deliver retail adjusted operating profit for the 2024/25
financial year of around £2.9bn, in line with the upgraded guidance
we gave at our Interim Results.
In addition, we continue to expect
retail free cash flow within our medium-term guidance range of
£1.4bn-£1.8bn and adjusted operating profit contribution from the
retained Tesco Bank business of around £120m.
Contacts.
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Investor Relations:
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Chris Griffith
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+44 (0) 1707 940 900
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Andrew Gwynn
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+44 (0) 1707 942 409
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Media:
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Christine Heffernan
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+44 (0) 330 678 0639
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Teneo
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+44 (0) 207 420 3143
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A call for investors and analysts
will be held today at 09:00am. A link will be available on our
website at www.tescoplc.com/investors.
A transcript and playback facility will also be made available
after the call.
We will report our Preliminary
Results on Thursday 10 April 2025.
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Additional sales detail.
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19
weeks to 4 Jan 2025
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Sales
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Sales
change
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Sales
change
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(exc. VAT, exc. Fuel)
|
£m
|
|
(constant
rates)
|
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(actual
rates)
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UK
& ROI
|
22,333
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+4.0%
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+3.8%
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UK12
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17,920
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+4.6%
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+4.6%
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ROI
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1,138
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+5.5%
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+1.9%
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Booker
|
3,275
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+0.1%
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+0.1%
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Central Europe
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1,609
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+3.7%
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(2.6)%
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Group
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23,942
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+4.0%
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+3.3%
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UK
fuel sales.
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Sales £m
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Like-for-like sales
growth
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19 weeks
|
|
Q3
|
+
|
Christmas
|
=
|
19 weeks
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UK exc. Fuel
|
17,920
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+3.8%
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+4.1%
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+3.9%
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Fuel
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2,116
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(12.4)%
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(10.8)%
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(11.9)%
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UK
revenue
|
20,036
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+1.6%
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+2.4%
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+1.9%
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Booker like-for-like sales growth.
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Q3
|
+
|
Christmas
|
=
|
19 weeks
|
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Core retail
|
(0.5)%
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+5.7%
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+1.3%
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Core catering
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+1.8%
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+5.0%
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+2.8%
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Tobacco
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(11.0)%
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(6.1)%
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(9.5)%
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Best Food Logistics
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(3.9)%
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(4.1)%
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(4.0)%
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Total Booker
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(2.6)%
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+1.4%
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(1.3)%
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Notes.
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1.
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Central Europe Christmas
like-for-like includes a +0.7ppts benefit from the timing of public
holidays in Slovakia.
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2.
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Sales growth percentages refer to
like-for-like change unless otherwise stated.
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3.
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UK market share based on Kantar
Total Grocers Total Till Roll for 12 weeks to 29 December 2024. A
'period' for market share purposes is defined as a four-weekly read
of market share across the previous 12 weeks.
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4.
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UK Kantar net switching gains
12-week ending rolling basis to 29 December 2024. Net switching
gains refers to the aggregated total of each group, with 'full-line
grocers' referring to Sainsbury's, Asda and Morrisons, 'premium
retailers' referring to Waitrose and Marks & Spencer, and
'limited-range discounters' referring to Aldi and Lidl.
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5.
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Customer Perception based on
year-on-year changes in YouGov BrandIndex score for the 12 weeks
ended 5 January 2025.
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6.
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UK Price index is an internal
measure calculated using the retail selling price of each item on a
per unit or unit of measure basis. Competitor retail selling prices
are collected weekly by a third party. The price index includes
price cut promotions and is weighted by sales to reflect customer
importance. 'Full-line grocers' refers to Tesco, Sainsbury's, Asda
and Morrisons.
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7.
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Price per person of £1.84 for
Christmas meal for six, based on a total of eight products when
using Clubcard, including a Tesco Small Whole Turkey 3kg.
Equivalent price per person in December 2023 of £2.09.
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8.
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Our partnership with The Entertainer
means we no longer recognise the full value of toy sales and
instead earn commission income. This impacts our reported UK
Q3, Christmas and 19 week like-for-like sales by (0.3)ppts,
(0.4)ppts & (0.4)ppts respectively. There is a similar impact
on the like-for-like sales of ROI and the Group. UK 19 week
non-food like-for-like sales including toys was (1.6)%.
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9.
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UK Online market share based on
year-on-year change in Kantar Total Grocery online channel for 12
weeks to 29 December 2024.
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10.
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ROI market share based on
year-on-year change in Kantar Total Till Roll for 12 weeks to 1
December 2024. A 'period' for market share purposes is defined as a
four-weekly read of market share across the previous 12
weeks.
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11.
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BASIS Global Brand Tracker.
Responses to the question: "How likely is it that you would
recommend the following company to a friend or
colleague?".
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12.
|
UK sales includes sales from the
retained Tesco Bank business but these sales are excluded from
like-for-like growth metrics.
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