London, Jan 15, 2026, 09:32 GMT — Regular session.
- Tesco shares climbed roughly 0.9% in early trading.
- A recent filing revealed the grocer continued repurchasing shares as part of its £1.45 billion buyback plan.
- Recent UK spending figures reveal cautious consumers and uneven demand beyond food.
Tesco PLC shares edged up 0.9% to 425.1 pence in early London trading Thursday. The stock gained 3.8 pence during the session, fluctuating between 422.9 and 426.2 pence. (Investing)
The grocer purchased 476,674 shares on Jan. 14, paying an average of 419.57 pence each, as part of its £1.45 billion share buyback plan. Tesco confirmed these shares will be cancelled, reducing the total number of shares outstanding. (Investegate)
Timing is key as investors wrestle with how fast UK consumers are pulling back following a rocky close to 2025. Barclays reported a 1.7% decline in overall consumer card spending in December—the sharpest fall since early 2021. Jack Meaning, Barclays’ chief UK economist, summed it up bluntly: “2025 ended with a whimper.” (Reuters)
Industry data revealed the divide hitting general retailers while supermarkets hold steady. The British Retail Consortium reported total retail sales increased 1.2% year-on-year in December. Food sales climbed 3.1%, but non-food sales fell 0.3%. (Brc)
Macro data came in mixed Thursday. Britain’s economy expanded 0.3% in November, outperforming a Reuters poll that expected just 0.1%. Investors are still pricing in two quarter-point rate cuts from the Bank of England this year. KPMG’s Yael Selfin noted “tentative signs” of household spending picking up. (Reuters)
The UK retail sector showed volatility again. Dunelm’s stock dropped 16.6% after the homewares chain warned that cautious shoppers and steep discounting would drag profits toward the low end of forecasts. Peel Hunt’s John Stevenson pointed out that discounting was unusually fierce around Black Friday. (Reuters)
Competition continues to weigh heavily on food retail. Asda’s bonds and loans dropped following a sales slump in December, the Financial Times reported, highlighting how swiftly price changes at one retailer can send shockwaves through the sector. (Financial Times)
But buybacks won’t always protect stocks. If competition drives prices lower or costs rise faster than sales, investors may ignore the falling share count and still push the stock price down.
Tesco’s next major event is its preliminary 2025/26 results, due April 16. Investors will be watching closely for updates on trading trends and how quickly the company plans to return capital. (Tescoplc)
