Tesco shares plunge despite Christmas sales growth


Retailer’s fresh food sales outperformed its rivals

Tesco shares fell around 4 per cent today morning despite the supermarket announcing record sales over Christmas period.

Britain’s biggest retailer posted its total like-for-like sales growth was 1.9 per cent with food rising 3.4 per cent. Tesco’s fresh food sales outperformed its rivals by almost four per cent, the supermarket added.

According to reports, Tesco took a significant hit from lost tobacco sales after the collapse of wholesaler Palmer & Harvey last year put an extra strain on its distribution network.

According to Tesco chief executive Dave Lewis: “We have continued to outperform the market throughout this period, particularly in fresh food, thanks to our most competitive offer for many years. Our trading momentum accelerated across the third quarter and into December, with the four weeks leading up to Christmas Day delivering record sales and volumes in the UK.”

This was the best festive sales uplift for Tesco since 2010.