Tesco set for revenue boost despite grocery price war fears

Tesco is set to report stronger revenues in its upcoming full year results on 10 April, according to analysts.

During its most recent update, the UK’s biggest supermarket, said it was considering replacing its barcodes with QR codes, said it had pulled in its highest market share in nearly nine years, hitting 29% of the industry’s sales.

Tesco’s UK and Ireland like for like revenues, excluding fuel and VAT, rose 3.7% over the six weeks to 4 January, while it saw record trading during the week before Christmas.

Hargreaves Lansdown equity analyst Aarin Chiekrie said: “Growth in the UK and Europe helped to offset declines in its wholesale business, Booker.

“It’s a competitive space but its improving proposition saw Tesco record its highest market share since 2016.

“Investors will be keen to see this trend continue when it reports full-year results next week.”

It comes after shares in the grocery giant hit their highest point in more than a decade earlier this year.

Despite this, shares in the business have faced a sell-off across the industry during recent weeks, over fears that a grocery price war could affect its profits.

It follows Asda chair Allan Leighton rolling out plans to win back market share as it focusses on reduced prices to win over customers.

In January, Asda reintroduced its Rollback price cuts and its famous pocket tap under the businessman’s efforts to revive the retailer.

The grocer has also brought back a host of Asda alumni, including Ade McKeon, Gemma Lightbody, Matt Shields, and David Lepley.

Click here to sign up to Retail Gazette‘s free daily email newsletter