Tesco has credited its new own-brand products and ‘Finest’ range for a 4.7% increase in sales year-on-year, in fact its premium range saw sales jump 18%.
The Big 4 supermarket has introduced over 350 new own-brand products across the quarter (13 weeks ended 24 May 2025), including the launch of an “exciting summer food range”. The grocer reported its overall UK brand perception increased 65bps YoY; with further improvements in quality and value perception.
Non-food sales (excluding toys) also increased by 6.2%, with Tesco seeing strong growth in home and clothing, as it benefiting from the warmer weather and the introduction of new and extended ranges. In May, the supermarket relaunched its clothing range F&F online, helping more customers access its “stylish and affordable clothing”.
Ken Murphy, chief executive, Tesco, said: “Our continued commitment to delivering great value, quality and service for our customers has contributed to like-for-like sales growth across all parts of the Group.
“In the UK we have continued to see market share gains and increased customer satisfaction across a wide range of measures, a reflection of our powerful value proposition, strong availability and focus on product quality and innovation.
“The market remains intensely competitive, and we are committed to ensuring customers get the best value in the market by shopping at Tesco. I would like to thank every one of our colleagues for the contribution they are continuing to make to deliver the best possible shopping trip for our customers.”
Following these latest results, Tesco stressed its profit guidance remains unchanged. It expects Group adjusted operating profit of between £2.7bn and £3.0bn for FY 25/26 (FY 24/25: £3.1bn), and free cash flow within the medium-term guidance range of £1.4bn to £1.8bn.
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