Shares in Tesco (LON:TSCO) have climbed higher this morning, as Kantar Worldpanel disclosed that sales at Britain’s biggest grocer had climbed in the 12 weeks ended September 9. The update comes ahead the blue-chip supermarket’s highly-anticipated media day tomorrow when the FTSE 100 company is expected to confirm the launch of its new discount chain Jack’s, as it looks to battle competition from German discounters Aldi and Lidl.
As of 09:50 BST, Tesco’s share price had added 0.93 percent to 237.30p. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.02 percent lower at 7,300.88 points.
Latest Kantar Worldpanel data
Kantar Worlpanel announced in a statement that overall UK grocery sales had grown 3.8 percent in the 12 weeks ended September 9, boosted by a record-breaking hot summer. At Tesco, sales rose 1.9 percent during the reported period.
“Tesco Express also benefited from shoppers staying close to home and performed especially well,” Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, commented in the statement, further noting that the group’s ‘Exclusively at’ brands such as Eastman’s and Creamfields were proving popular with shoppers.
“The own-label product lines launched earlier this year and accounted for £90 million of sales over the past 12 weeks – finding their way into 16% of Tesco shopping basket,” McKevitt added.
Analyst ratings update
Berenberg Bank reaffirmed Tesco as a ‘buy’ yesterday, valuing the shares at 925p, while last week, Shore Capital also reiterated its ‘buy’ stance on Britain’s biggest grocer, without specifying a price target on the stock. According to MarketBeat, the FTSE 100 group currently has a consensus ‘buy’ rating and an average price target of 262.07p.