London, Jan 11, 2026, 08:44 GMT — Market closed
- Tesco shares finished at 415.4p, slipping 1.6% on Friday following a 6.7% drop the previous day
- On Jan. 9, CEO Ken Murphy and CFO Imran Nawaz snapped up shares; Tesco also revealed new buyback acquisitions
- Next up: UK inflation figures on Jan. 21, followed by Tesco’s April 16 earnings, which will shed light on margins and cash returns
Tesco (TSCO.L) shares closed Friday at 415.4 pence, slipping 1.6% after the stock had already fallen 6.7% the day before. The low for Friday was 412.6p, marking a clear slide from this year’s peak of 480.5p.
The late-week filings are significant since Tesco’s Christmas update raised its profit forecast but sparked debate over how aggressively the group will need to use pricing to protect its market share.
The question resurfaces as Monday’s open approaches. UK grocery spending remains steady, yet the balance between volumes and margins can shift fast when rivals target the same basket.
A regulatory filing revealed that Tesco CEO Ken Murphy and CFO Imran Nawaz each picked up 11,961 shares at £4.18 on Friday. Both executives spent just under £50,000 on their purchases.
Tesco revealed it repurchased 475,248 shares on Jan. 8 at an average price of 425.18p per share as part of its £1.45 billion buyback programme, with plans to cancel the stock. Since launching the programme in April 2025, the grocer has bought back 348.4 million shares, spending £1.44 billion.
On Thursday, Tesco pegged its full-year adjusted operating profit at the high end of its £2.9 billion to £3.1 billion forecast, a figure that strips out some one-off items. The retailer posted a 3.2% increase in underlying UK sales over the six weeks to Jan. 3, though noted that this fell slightly short of what analysts had expected.
Murphy didn’t mince words. “Competition is as intense as ever,” he said, emphasizing that “value remains a priority for customers.” Reuters
Peers are echoing similar views on pricing despite easing inflation. Sainsbury’s CEO Simon Roberts predicts food inflation will continue to drop through 2026 but flagged wage costs as a lingering concern, with Britain’s main minimum wage set to rise by 4.1% in April.
Chart watchers will focus on whether shares can hold above the low-410p mark after falling for two days. A swift rebound might relieve some selling pressure, but it won’t resolve the bigger question: can Tesco defend its margins while maintaining a close price gap to discounters?
There’s a clear risk here. Should competitors push for a bigger price war, Tesco might end up shelling out more than expected just to hold its ground. That would quickly undermine the story of rising profits. It would also shift scrutiny onto cash flow and how long Tesco can maintain its current stock buyback pace.
The next key macro event for UK retailers is the Office for National Statistics’ inflation report due on Jan. 21, setting the stage before the Bank of England’s rate decision on Feb. 5. Tesco’s next scheduled update is its preliminary results, coming April 16.
