Tesco and M&S Report Record Christmas Sales Despite Economic Challenges

Both retailers saw significant growth in festive food sales, but rising taxes and inflation pose challenges for the year ahead.

Tesco achieved its 'biggest ever Christmas,' with UK sales rising 4% and its grocery market share reaching 28.5%, the highest since 2016.
Marks & Spencer reported an 8.9% increase in food sales and a 1.9% rise in clothing, home, and beauty sales, with strong demand for premium products and partywear.
Tesco attributed its success to investments in pricing, product quality, and hiring 28,000 additional staff during the holiday season, while M&S highlighted its focus on premium offerings and innovation.
Both companies experienced strong online sales growth, with Tesco's online sales up nearly 11% and M&S seeing a similar increase in its clothing and home divisions.
Retailers face mounting cost pressures from a £7 billion rise in taxes, with M&S warning of potential price increases for food and reduced profit margins in 2025.