Tesco Reaches Decade-High Market Share Amid Festive Food Spending

Recent retail data shows that Tesco and M&S experienced increased demand for festive food during the Christmas period, while non-food categories saw weaker results.

Tesco achieved its strongest UK grocery market share in more than a decade during the holiday season. This development highlights a shift in consumer spending priorities, with food purchases rising as other retail categories lagged.

Both Tesco and M&S benefited from higher sales of seasonal food items. However, their performance in non-food segments, such as clothing and household goods, did not match the gains seen in grocery sales.

Retailers across the UK reported that food sales outpaced other categories during the festive period. The trend was particularly noticeable at leading chains, where grocery purchases contributed to overall market share growth.

What the numbers show

• Tesco reached its highest UK grocery market share in over ten years during Christmas
• Both Tesco and M&S saw increased consumer spending on festive food
• Non-food categories underperformed compared to food sales for these retailers

Industry reports indicate that the Christmas period was marked by strong demand for food, with shoppers prioritising groceries over gifts and non-food items. This pattern was observed at multiple leading retailers.

While food sales provided a boost to overall performance, non-food categories did not see similar growth. Retailers noted that spending on items such as clothing and home goods was weaker than in previous years.

The shift in consumer behaviour during the festive season contributed to changes in market share among major retailers. Tesco’s performance in grocery sales set a new benchmark for the company over the past decade.

As the retail sector reviews results from the Christmas period, the emphasis on food purchases stands out as a key factor in shaping market dynamics for leading UK chains.

* This article is based on publicly available information at the time of writing.