Tesco Reports Sales Growth Amid Price Wars

Tesco, the UK's largest supermarket, reported a 4.6% year-on-year increase in group sales to £16.4 billion for the first quarter, with like-for-like UK sales rising 5.1% and market share reaching 28%. The company outperformed analyst forecasts, driven by strong demand for own-brand and premium products, including an 18% rise in its Finest range. Tesco has invested in price initiatives such as the Aldi Price Match scheme and Clubcard deals to compete amid heightened sector rivalry and price wars initiated by competitors like Asda. Adjusted operating profit for the year is expected to be between £2.7 billion and £3 billion, down from £3.13 billion last year, reflecting increased competition. CEO Ken Murphy highlighted that Tesco's inflation rate is below the industry average and reaffirmed the company's commitment to value and customer satisfaction. Tesco continues to launch new own-brand products to attract price-conscious consumers.