Britain's largest supermarket chain Tesco has reported its strongest Christmas trading period yet, with UK sales rising 4.1 per cent in the six weeks to 4 January 2025, helping push its market share to its highest level since 2016.

The retailer saw food sales increase by 4.7 per cent over the festive period, driven primarily by volume growth and strong performance in fresh food. Non-food sales, excluding toys, grew by 4 per cent, with growth seen across both home and clothing categories.

Tesco's premium Finest range performed particularly well, with sales surging 15.5 per cent. The range included over 300 festive products, including an expanded Finest Chef's Collection.

Online shopping continued to show robust growth, with sales up 10.8 per cent. The supermarket fulfilled over 1.2 million orders through its Whoosh rapid delivery service during the Christmas period.

Chief executive Ken Murphy said: "I am very proud of the entire Tesco team and the way we served customers this Christmas. We invested to bring the best value, quality and service to everyone, no matter how or where they shopped with us."

The strong performance helped Tesco achieve a market share of 28.5 per cent, representing its highest level since 2016. The company said it has now recorded 19 consecutive periods of market share gains, with customers switching from both premium retailers and discount competitors.

The supermarket maintained its position as the UK's cheapest full-line grocer, offering its traditional Christmas dinner at a 12 per cent lower price compared to the previous year.

Looking ahead, Tesco confirmed its retail adjusted operating profit guidance for the 2024/25 financial year remains unchanged at around £2.9 billion.

Murphy added: "As we start 2025, we look forward to continuing to offer our customers the very best products and experience at Tesco."

The company also reported that its Winter Food Collection saw 1.9 million meals donated to foodbanks by customers and colleagues, highlighting its continued community engagement during the festive period.

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