Tesco shows no sign of losing its grip as the country’s biggest supermarket, despite fighting a price war and higher business costs, experts say. Investors are hopeful that the grocery giant will maintain its sales growth when it publishes its half-year results on Thursday.
Sales rose 4.6 per cent in Tesco’s first quarter compared with the previous year, boosted by growing demand for own-brand and premium products. According to analysts, Tesco’s share of the market is now 28.4 per cent.
Meanwhile, Tesco’s biggest rivals, Sainsbury’s and Asda, have seen their market shares fall as discounters Aldi and Lidl continue to gain customers.
Richard Hunter, from Interactive Investor, commented: “At the first quarter numbers in June, there were no signs that the company was losing its grip. Indeed, the juggernaut powered on.”
In April, Tesco warned that it expected to make as much as £400 million less profit as competition between grocers intensifies.
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