Yahoo Finance Tesco Finest range is winning over M&S and Waitrose shoppers, supermarket claims
Tesco is luring shoppers from Marks & Spencer and Waitrose with its “Finest” range of food and drink, the supermarket has claimed, helping to boost sales.
Tesco said sales of its Finest range jumped 12pc in the three months to 25 May, as its chief executive claimed growth in the company’s share of the grocery market was at its highest in two years.
The supermarket said customers’ perception of Tesco’s quality had improved, with recent product launches including a “Dine In” summer range based on classic pub dishes such as beer battered cod and sticky toffee pudding.
Demand helped boost like-for-like food sales by 3.4pc to £15.3bn over the quarter, Tesco said. Non-food sales were up by just 0.7pc.
Ken Murphy, chief executive, said: “We continue to be the cheapest full-line grocer and are the most competitive we’ve ever been, with our value, product quality and service driving better brand perception and customer satisfaction.
“Our market share reflects this, growing more than at any other time in the past two years, with customers switching to us from other retailers, shopping with us more often and with more in their baskets.”
The retailer said on Friday its Finest products were encouraging shoppers to switch from the two “premium” retailers, with a12pc jump in sales of Finest lines over the three months to May 25.
It comes as Waitrose battles for market share with a resurgent Marks & Spencer, which has been vying to claim its position as the middle class supermarket of choice.
Stuart Machin, the chief executive of M&S told The Telegraph earlier this month: “You could argue we should have overtaken them already.”
Mr Murphy admitted on Friday that the grocery market was proving “intensely competitive”, particularly with regard to the discounters Aldi and Lidl.
He said: “All of the players, both the discounters and the full line grocers, are intensely competitive, remain so, and we expect to have a battle on our hands for the right to win [shoppers baskets] for the foreseeable future.”
“I wouldn’t make any predictions about competition.”
The two German discounters have heaped pressure on the traditional grocers, spurring them to launch price-matching schemes and cut prices.
Tesco has steadfastly held on to its 27pc market share throughout the cost of living crisis, while Morrisons and Asda have seen their share decline. Aldi has overtaken both grocers to become the UK’s third largest supermarket.
It comes after Tesco’s profits soared last year, rising from £882m to £2.3bn in the year to February 2024. This financial performance landed Mr Murphy a total pay package of almost £10m, about double on a year earlier.
This has angered some campaign groups, who have accused the supermarket of paying him a disproportionately large sum during the cost of living crisis.
Mr Murphy said on Thursday that he “absolutely accepted” he was “well-paid” ahead of a shareholder vote on Tesco’s remuneration report and policy.
He added the retailer had invested “very heavily” in clamping down on high levels of shoplifting, but warned it was still an issue. Both Labour and the Conservatives have pledged to clamp down on shoplifting in their manifestos.
Waitrose and Marks & Spencer were approached for comment.
