Tesco Q3 Report 2023
UK: Continuing to outperform the market, with stronger than expected volume growth
- Strong market share performance, up +15bps to 27.9% in the four weeks to Christmas, with net switching gains for ten consecutive periods
- Six-week Christmas like-for-like sales increase of 6.8% includes growth of 9.2% in the four weeks to Christmas
- Consistent volume growth across the period; particular strength in fresh food supported by market-leading availability
- Now consistently the cheapest full-line grocer for over 14 months; continuing to inflate less than all key competitors
- Prices cut on nearly 2,700 products with savings of c.10%, alongside unrivalled value proposition of Aldi Price Match, Low Everyday Prices & Clubcard Prices; further 150 Price Cuts and double Clubcard points announced this week
- Continued investment in innovation and quality with over 550 new and improved festive products, including the launch of our ‘Finest Chef’s Collection’ festive food to order range; quality perception up +91bps YoY vs market decline; won 35 Christmas food awards
ROI: Sales and volume growth driving strongest market share in nine years
- Market share growth, up +73bps to 24.5%; switching gains for 12 consecutive periods & strongest share since 2015
- Particularly strong performance in fresh food driven by consistently strong volumes
- Value proposition further strengthened by market-leading Clubcard Prices deals on festive favourites; Clubcard sales penetration up 10ppts YoY to 85%
