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Tesco Lifts Profit Outlook as Post‑Christmas Supermarket Price Fight Escalates

New Which? findings crown Aldi the cheapest for the year, underscoring mounting price pressure across UK grocery.

Overview

  • Tesco expects adjusted operating profit at the upper end of its £2.9bn–£3.1bn guidance after a Christmas period that saw UK like-for-like sales up about 3.2% and market share reach roughly 28.7%.
  • Fresh food led Tesco’s growth with sales up 6.6%, online orders increased by more than 11% aided by AI scheduling, and the retailer reported its busiest-ever trading days on 22 and 23 December.
  • Tesco has intensified its value push by reviving blue‑and‑white value branding and locking prices on more than 3,000 branded items as competition on price accelerates.
  • Asda, following a weak festive performance with market share near 11.4% and sales down about 4.2%, cut prices on over 2,300 everyday products to undercut rivals’ loyalty prices and is offering 10% back on fresh produce via Asda Rewards in January.
  • Which? named Aldi the UK’s cheapest supermarket for 2025 with Lidl close behind, while Sainsbury’s reported stronger grocery sales of about 5.1% over the key period but continued declines in non-food and Argos.