London, Jan 25, 2026, 09:17 GMT — Market closed.
- Tesco shares closed Friday 0.7% lower at 413.2 pence, slipping roughly 3% for the week
- UK retail sales volumes climbed 0.4% in December, surpassing expectations and ending a streak of monthly declines
- Tesco is set to release its Preliminary Results on April 16
Tesco PLC shares (TSCO.L) dropped 0.7% on Friday, closing at 413.2 pence. This continues a decline that’s shaved around 3% off the stock in the last week and leaves it roughly 9% below its early-January close near 455 pence. 1
London markets were closed Sunday, leaving traders to kick off Monday focused once more on UK consumer data. Tesco, typically a steadier player amid a volatile retail sector, now faces scrutiny over whether stronger figures will shift sentiment on pricing and margins in the short term.
British retail sales volumes increased by 0.4% in December, bouncing back after drops in October and November. Non-store retailers reversed two months of declines during the same period. 2
Economists surveyed by Reuters had predicted a slight decline, but some investors saw a modest easing of post-budget jitters. Neil Birrell, chief investment officer at Premier Miton, commented, “The budget was tough, but people’s worst fears weren’t met.” Thomas Pugh, chief economist at RSM UK, warned that renewed political instability could drag on confidence. The same Reuters report highlighted Tesco’s stronger performance, contrasting with weaker results from Marks & Spencer and a profit warning from Primark owner Associated British Foods, while Next raised its outlook. 3
Sentiment gauges aren’t surging, but they’re shifting. GfK’s consumer confidence index hit -16 in January, marking its best level since August 2024. Neil Bellamy, GfK’s consumer insights director, noted that consumers are “focusing on what they can control – their own spending and saving.” 4
Tesco’s latest trading update raised expectations. On Jan. 8, the retailer reported a 3.2% increase in UK underlying sales for the six weeks ending Jan. 3. It also projected adjusted operating profit—its favored metric—at the high end of its 2.9 billion to 3.1 billion pounds guidance. Yet CEO Ken Murphy cautioned that competition remains “as intense as ever.” 5
Murphy called consumer sentiment “mixed,” telling reporters some households are “in pretty good shape,” while others are “counting every penny.” 6
Tesco’s buyback quietly backs the stock. A filing from Jan. 20 revealed the company snapped up 429,649 shares on Jan. 19 as part of its £1.45 billion repurchase plan, paying an average of 425.92p each. The shares will be cancelled. 7
But December’s sales jump isn’t the whole story. It came after two months of declines, and data remains spotty across different categories. If real incomes take another hit, price sensitivity will spike—and that’s precisely where grocers fight for market share.
Investors should mark April 16 on their calendars—Tesco’s preliminary results for 2025/26 are due then. This update will likely reveal the company’s cash flow outlook, the speed of its buyback program, and whether it plans to shield profits without loosening its grip on pricing. 8
