Britain’s greatest retailer Tesco on Thursday, January 9 reported file gross sales for the important thing Christmas season, whereas Marks & Spencer (M&S) has damaged “gross sales information”. These performances are consistent with different distributors within the UK. In the meantime, Boots has delivered a powerful first quarter of its staggered Monetary 12 months, with complete comparable retail gross sales up 8.1% YoY for the three months ended 30 November 2024. The UK’s main well being and sweetness retailer noticed progress throughout all classes and channels, on prime of a big improve within the prior yr.
Within the 19 weeks to January 4, comprising Tesco’s third quarter and Christmas buying and selling interval, UK gross sales jumped 4.6 % to GBP 17.9 billion (USD 22 billion or EUR 21.32) in contrast with a yr earlier.
Tesco’s market share stands at 28.5%, in response to figures from Kantar [1], regardless of sturdy competitors from low-cost chains, which additionally offered glorious outcomes over the interval: Aldi introduced “one of the best Christmas in its historical past” and Lidl “file gross sales”.
“We delivered our greatest ever Christmas,” Tesco’s chief govt Ken Murphy mentioned in a buying and selling assertion. “Our sturdy efficiency displays the investments we’ve got made, positioning Tesco because the UK’s most cost-effective full-line grocer for over two years,” he added.
Marks & Spencer, for its half, noticed its gross sales improve by 5.9% in its British and Irish shops, to three.8 billion kilos over the quarter.
“This was one other good Christmas for M&S, constructing on a powerful efficiency within the prior yr,” mentioned Stuart Machin, Chief Government. “Gross sales information have been damaged throughout the enterprise, with Meals recording its greatest day and Clothes, Dwelling & Magnificence on-line its greatest week, however we’re not complacent – as a progress enterprise it’s our job to interrupt information.”
Like-for-like gross sales have been up 8.9% for Meals and 1.9% for Clothes, Dwelling & Magnificence.
“M&S appears to be nailing its transition in the direction of a leaner and stronger enterprise,” commented Aarin Chiekrie, analyst at Hargreaves Lansdown. “However competitors will stay extraordinarily powerful,” he added.
The corporate mentioned it stays assured in its capability to make “additional progress within the the rest of the yr,” however stresses that its outlook stays “unsure”, significantly as a consequence of “greater prices” linked to the tax will increase deliberate within the price range offered on the finish of October by the British authorities.
The British Retail Consortium (BRC) on Thursday, January 9, warned that retailers might elevate costs by a median of 4.2 % within the second half of the yr owing to the UK authorities’s tax-raising price range in late 2024. “There’s little hope of costs going wherever however up,” mentioned BRC chief govt Helen Dickinson.
So far as Boots is worried, the retailer good outcomes have been supported by an distinctive Black Friday interval, with gross sales up 20% throughout the week. “On the Friday itself, boots.com achieved its greatest ever day of gross sales, with virtually 5 orders per second throughout its busiest hour. Retailer gross sales have been additionally sturdy. Perfume, magnificence, and Christmas presents have been the highest promoting classes throughout Black Friday week each in shops and on-line with practically two bottles of perfume bought each second,” mentioned the corporate.
Boots’ magnificence gross sales have been with up 11% YoY for the quarter, pushed by perfume, premium magnificence, and skincare.
