Updated / Thursday, 18 Jun 2026 11:49
Supermarket chain Tesco has revealed an increase in sales over the past three months despite “uncertainty” linked to the conflict in the Middle East.
The retailer revealed that total sales increased by 1% to £16.8 billion over the 13 weeks to May 30, compared with a year earlier.
But its underlying UK sales growth in its first quarter slowed down, missing analysts’ average forecast.
The company’s shares were down 2.6% today, paring gains over the last year to 11%. Tesco maintained its profit guidance for the full year.
Tesco said UK like-for-like sales rose 1.8% in the 13 weeks to May 30, below analysts’ consensus forecast of 2.3% and compared to growth of 3.1% in the previous quarter.
Tesco said that growth in its Irish operations was supported by strong performance in Food.
It reported strong volume-driven sales growth, with like-for-like sales up 3.3% to £838m in its Irish stores.
Total sales jumped by 5.6% including contribution from new stores, while online sales increased by 10.9%.
It also noted that food sales up 3.7%, with volume growth across both Fresh and Packaged goods.
Geoff Byrne, CEO of Tesco Ireland, said the company had made a strong start to the year, building good momentum by staying focused on what matters most to customers – great value, quality and a convenient shopping experience.
“In a competitive market, customers are responding to the strength of our offer, from Clubcard Prices and Aldi Price Match to the quality of our award-winning own-brand ranges and our partnerships with Irish suppliers,” he said.
“This is reflected in strong volume-driven sales growth across the quarter,” he added.
Tough comparative with last year
Tesco was up against a tough comparative performance in the first quarter last year when UK like-for-like sales rose 5.1%, boosted by favourable weather and disruption at competitors Marks & Spencer and the Co-op.
“The (market share) gains we had last year and the sales growth we had were truly exceptional, so the base is that much higher,” CEO Ken Murphy said.
“In that context, we should be feeling pretty good about our performance and it’s not a sign of a slowdown per se – I wouldn’t be reading too much into it.”
The impact of the Iran war on energy prices, with knock-on effects on consumer spending, is adding to the challenges the UK retail sector and the wider economy face.
“We’re seeing that step back in consumer sentiment as a direct consequence of the war,” Ken Murphy said, though he noted that so far, inflation “hasn’t materialised as an issue” with Tesco’s food inflation running below the official rate for May of 2.2% cited by the Office for National Statistics.
Tesco kept its forecast for adjusted operating profit of £3-3.3 billion for its year to the end of February 2027, compared to the £3.152 billion made in 2025/26.
Garry White, chief investment commentator at Charles Stanley, said the maintenance of guidance “should reassure investors that Tesco is managing the balance between competitiveness and profitability effectively, despite a subdued trading backdrop.”
Murphy highlighted a strong quarter’s performance from Tesco’s rapid delivery service Whoosh, where sales grew over 30%.
He noted demand for the service spiked when England started their soccer World Cup campaign last night.
