Tesco Shares Surge to 12-Year High on Strong Sales, Profit Upgrades
Tesco's shares have surged this year, climbing 26% after a previous slump under Philip Clarke. The supermarket giant's stock reached a 12-year high, boosted by strong sales and profit upgrades.
Analysts at Hargreaves Lansdown praise Tesco's broad appeal and market share gains. Since Ken Murphy took over as CEO in October 2020, Tesco's share gains have been widespread. The retailer's Tesco Finest range and new products like pistachio gelato and iced coffee concentrates have proven popular, especially during good weather.
Tesco's market share in the grocery market has grown to 28.4%, with customers switching from rival supermarkets. The company's first-half sales increased by 5.1% to £33 billion, leading to an upgraded full-year profit forecast of £2.9 billion to £3.1 billion. Tesco's Aldi price match and Clubcard scheme have also contributed to its success.
Tesco's share price rose to its highest level since late 2013, up 22.7p or 5.3% to 452.5p. The retailer plans to intensify competition and keep prices low during the Christmas season to attract budget-conscious shoppers. With strong sales and profit upgrades, Tesco continues to strengthen its position in the stock market today.
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