London, Jan 20, 2026, 08:53 GMT — Regular session
- Tesco shares slipped roughly 0.1% in early London trading.
- The grocer announced another buyback, maintaining momentum in its £1.45 billion programme.
- Investors are eyeing Tesco’s preliminary results set for April 16.
Tesco PLC shares slipped 0.1% to 425.3 pence by 0838 GMT, underperforming amid a broader dip in European stocks.
On Monday, the UK grocer picked up 429,649 shares at an average of 425.92 pence each, as part of its £1.45 billion buyback plan. Tesco confirmed those shares will be cancelled, pushing total repurchases since April 2025 to 351.7 million shares, valued at £1.45 billion.
The immediate takeaway: the buyback may support the stock price, but it doesn’t answer the bigger challenge facing UK supermarkets — how aggressively they must raise prices to retain customers, and what that means for profits. “Rising staff costs… and a push to keep product price rises to a minimum” underpin management’s forecast, wrote Keith Bowman at interactive investor. ii.co.uk
European shares fell further on Tuesday, pressured by fresh U.S. tariff threats targeting parts of Europe. The growing trade tensions dampened appetite for risk, hitting even defensive sectors.
Tesco last updated the market on Jan. 8, projecting full-year adjusted operating profit near the top of its 2.9 billion to 3.1 billion pounds guidance range. This followed a 3.2% rise in underlying UK sales over the six weeks to Jan. 3. CEO Ken Murphy credited Tesco’s “investments in value, quality and service” for gaining market share but cautioned that “competition is as intense as ever.” Reuters
Adjusted operating profit reflects a company metric that excludes what it deems non-recurring items. Like-for-like sales focus on growth after removing effects like store openings and closures.
Investors see Tesco as a reliable earner in a tough sector where volume gains are scarce. As a result, its shares react sharply to even minor changes in outlook — whether it’s a guidance update, increased promotions, or signs competitors are pushing new price moves.
Tesco’s shares have been drifting well under their 52-week peak of 480.50 pence, yet still holding above the 52-week trough of 310.30 pence, according to data from Hargreaves Lansdown.
But the downside risk remains. Should the UK grocery battle intensify — with steeper cuts, extended price locks, and rising wage costs all hitting simultaneously — the margin equation shifts quickly, and buybacks won’t make up for it.
Tesco’s preliminary results drop on Thursday, April 16. Investors will zero in on cash flow details, any word on shareholder returns after the current buyback wraps up, and whether price cuts continue to hurt margins.
