London, Jan 26, 2026, 09:39 GMT — Regular session
Tesco PLC (TSCO.L) shares edged up 0.9% to 416.8 pence in early London trading on Monday, following a 413.2 pence close on Friday. The stock kicked off at 418.2 pence and fluctuated between 416.2p and 419.1p, with roughly 699,000 shares traded. 1
European stocks barely budged, as traders remained on edge following last week’s tariff scares. All eyes are now on the U.S. Federal Reserve’s policy decision set for later this week. 2
In Britain, recent surveys show stronger activity and a pick-up in consumer sentiment, despite ongoing challenges with stubborn inflation and a shaky labor market. Bank of England Governor Andrew Bailey expects inflation to near the central bank’s 2% target by April or May. Still, some officials warn that wage-led inflation could pose a threat. 3
Company news has been scarce lately, with recent regulatory updates zeroing in on capital returns. In a Jan. 20 filing, Tesco revealed it acquired 429,649 shares on Jan. 19, paying an average of 425.92 pence each. This move is part of its £1.45 billion buyback programme, pushing total purchases since April 2025 to 351.7 million shares, all set for cancellation. 4
Earlier this month, Tesco raised its full-year profit forecast to the top end of its guidance, following a 3.2% increase in underlying UK sales during the crucial Christmas period. CEO Ken Murphy highlighted that “investments in value, quality and service” fueled higher customer satisfaction and strong fresh food growth. He also noted, “Competition is as intense as ever.” Analysts pointed to Tesco’s price matching with Aldi on over 650 products and its Clubcard loyalty scheme as major factors behind the performance. 5
Investors are focused on how far Tesco must push pricing to protect sales volumes—and the impact that will have on margins. Grocers often seem stable until discounting begins to erode profits.
The UK labour market is showing signs of cooling, which presents a mixed picture for retailers. Slower wage growth could ease pressure on staffing costs, but weaker hiring might dampen consumer spending. Online jobs portal Adzuna reported a drop in vacancies in December and a slowdown in salary growth. Co-founder Andrew Hunter noted, “Competition for roles intensified and hiring slowed across many of the UK’s largest sectors.” 6
If rate cuts arrive more slowly or later than expected, household budgets will remain constrained for longer. That’s the risk for a stock already priced as if it can withstand tough conditions.
Tesco’s next major event is its preliminary results for 2025/26, set for April 16. The company also plans to release a first-quarter trading update on June 18, per its financial calendar. 7
