Tesco records strong Q3 with increased online sales and delivery service growth

For the 19 weeks covering Q3 (13 weeks to 22 November 2025) and the Christmas period (six weeks to 3 January 2026), group like-for-like sales excluding VAT and fuel rose 2.9%. UK sales increased 3.7% over the period, with the Republic of Ireland delivering growth of 4.6%. Combined UK and Republic of Ireland (ROI) sales were up 3.8%, Grocery Gazette reports.

In the UK, Tesco outperformed the market on both value and volume, with 12-week market share up 23 basis points to 28.7% and four-week share up 31 basis points to 29.4%, marking 32 consecutive four-week periods of year-on-year gains.

Fresh food was a standout category, with like-for-like sales up 6.6%, while the Finest own-label range delivered 13.0% growth, including a 22% increase in party food.

The retailer strengthened its value proposition over the festive period with initiatives including a Christmas dinner for six priced under £10 and expanded price investment across branded and own-label ranges. During the period Tesco launched 340 new and improved own-brand Christmas products, including 180 under Finest.

Online continued to be a key growth driver, with UK online sales up 11.2% and delivery service Whoosh growing 47%, attracting more than 250,000 new customers. Tesco added 100,000 extra online delivery slots in the week before Christmas, supported by AI-powered scheduling tools, and recruited 28,500 temporary staff for the festive period.

Following the strong Christmas performance, the retailer expects to deliver FY25/26 group adjusted operating profit at the upper end of its previously issued £2.9bn to £3.1bn guidance range. Free cash flow is still expected to fall within the medium-term guidance of £1.4bn to £1.8bn.

Chief executive Ken Murphy said the group delivered a “strong Christmas”, driven by investments in value, quality and service, which supported further gains in customer satisfaction and fresh food growth, resulting in Tesco achieving its highest UK market share in over a decade.

“I am delighted with the strong Christmas we delivered for our customers. Our investments in value, quality and service drove further gains in customer satisfaction and strong growth in fresh food, contributing to our highest UK market share in over a decade,” he said.

“Competition is as intense as ever and we know value remains a priority for customers. We are determined to help customers make their money go further, and earlier this week expanded our Everyday Low Prices commitment to over 3,000 branded products, sitting alongside Aldi Price Match on more than 650 lines and thousands of exclusive offers through Clubcard Prices.”

In ROI, Tesco recorded its fourth consecutive year of Christmas market share gains, with share up 41 basis points to 24.0%. Food sales increased 5.2%. The business opened five new stores and expanded Whoosh to 18 additional locations, including launches in Cork and Galway.

At wholesaler Booker, core catering sales grew 2.4%, supported by strong performance from specialist wine and spirits merchant Venus, but core retail sales declined 0.4%.

Central Europe delivered growth across all channels, driven by fresh food and online, with online like-for-like sales up 14.3%. The region launched 150 new own-brand Christmas products and recorded 28% growth in Finest sales.