Tesco reports strong Irish performance with sales up 5% over Christmas period

Analysts say Tesco's strategy of matching the prices of discounter Aldi on over 650 items, together its Clubcard loyalty scheme, which provides lower prices for members, is driving growth.

Supermarket giant Tesco said profit for this financial year will likely be at the upper end of its forecast after strong sales during the crucial Christmas period.

The supermarket operator expects group adjusted operating profit of about £3.1 billion (€3.57bn), it said Thursday.

Tesco has been winning market share against rivals in recent years through its premium and store brand products, as well as price-matching against discount retailers.

Across the Republic of Ireland, Tesco reported market share gains of 41 basis points to 24%, marking its fourth consecutive year of gains over the Christmas period.

Food sales in the republic between November and January grew by more than 5% annually, with Tesco noting particularly strong growth in fresh food. It also opened five new stores in the Republic, and welcomed the rollout of Whoosh to 18 new locations, including further expansion in Dublin and launches in Cork and Galway.

Analysts say Tesco's strategy of matching the prices of discounter Aldi on over 650 items, together its Clubcard loyalty scheme, which provides lower prices for members, is driving growth.

Following a strong Christmas performance, Tesco now expects to deliver full-year group adjusted operating profit at the upper end of the £2.9bn (€3.38bn) to £3.1bn (€3.57bn) guidance range issued in October. 

Speaking on its successful period, Cork-born chief executive of Tesco Ken Murphy said: “I am delighted with the strong Christmas we delivered for our customers.

"Online sales grew double-digit and Whoosh also performed strongly, with more than 250,000 new customers over the period.

"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."

Across the British market, Tesco's said it had continued to outperform the wider UK retail market with a focus on value at a time of subdued consumer confidence, still high inflation and weakening employment.

Industry data shows Tesco ended 2025 with a UK grocery market share of 28.7%, up 20 basis points on the year and its highest level since March 2015.

The supermarket operator like-for-like sales in the latest quarter rose 3.9% having been up 4.6% in its second quarter. Growth then slowed to 3.2% in the six weeks to January 3. Shares in Tesco have increased 22% over the last year.

Speaking on the company's recent performance, Geoff Byrne, CEO of Tesco Ireland, said: “Our strong third quarter performance, which includes a very successful Christmas trading period, reflects the ongoing positive momentum across our business.

"We’ve continued to invest in our store network, opening five new stores in recent weeks, including two large stores in Howth and Drogheda, creating 220 new jobs, and bringing Tesco to even more customers across Ireland.

"Our rapid delivery service, Whoosh, is also growing strongly, now available in Cork and Galway as well as Dublin."