London, Feb 20, 2026, 12:00 GMT — Regular session
- UK retail sales outperformed expectations, nudging Tesco shares up 0.3% and giving London stocks a slight lift.
- Shares sit just under their 52-week peak of 499.0p, a level hit back on Feb. 18
- Attention is now on whether robust consumer spending will be enough to counter rising grocery prices as Tesco’s April results approach.
Tesco shares ticked up Friday, echoing gains across UK equities. A surprise boost in official retail sales data gave fresh momentum to consumer-facing names.
Midway through the session, Tesco picked up 1.5 pence to reach 498.3 pence—just shy of its 52-week peak, a 0.3% gain. Sainsbury’s rose about 0.7%, while Marks & Spencer tacked on a similar 0.7%. (London South East)
This shift has investors watching closely, looking for signs that UK demand is finding its footing after a sluggish close to 2025—and what that could spell for rates and household spending. January retail sales volumes jumped 1.8% from the previous month, sharply outpacing the 0.2% rise expected in the Reuters poll. On the year, growth reached 4.5%, the fastest pace since February 2022. “Consumers are opening their wallets again,” said Thomas Pugh, chief economist at RSM UK. (Reuters)
Retail sales staged their biggest monthly jump since May 2024, ONS figures showed, though volumes are still flat when stacked up against February 2020’s levels. That leaves retailers weighing whether shoppers are truly coming back, or if the uptick is mainly about deals and shifting calendars. (Office for National Statistics)
The FTSE 100 in London started the day in positive territory following the data, as some analysts suggested conditions could be turning more favorable for the sector with spring approaching. Shore Capital’s David Hughes echoed this view, stating, “We remain cautiously optimistic on the sector for the year ahead,” but also warned about the possibility of “big surprises in the Spring Statement.” (MarketScreener)
Tesco shares have been trading as if resilience is a given. The stock hit 499.0 pence back on Feb. 18 and has largely hovered there, even as the broader UK cyclicals saw volatility.
No new updates from Tesco on Friday. Instead, investors focused on macro data and the sector’s overall stance. According to traders, the immediate question is whether shares can break above recent highs without fresh company news.
There’s a catch: headline retail sales may look strong, but that doesn’t always mean food retailers are moving more product—intense price wars and shifting promotions can make margins unpredictable. According to the ONS, most of the lift came from non-food segments, with artwork, antiques, and online sales leading the way. (The Guardian)
Looking ahead, Tesco’s set to report its preliminary results on April 16. The market will hone in on any shift in profit guidance, UK core trading updates, plus hints that pricing pressure is cooling rather than picking up steam. (tescoplc.com)
