Shares in Tesco (LON:TSCO) have jumped in London in today’s session after the latest Kantar data showed that Britain’s biggest grocer had grown sales over the 12 weeks to December 30. The news comes as the FTSE 100 company prepares to update the market on its third-quarter performance on Thursday, following blue-chip peer Morrisons’ (LON:MRW) update today. Sainsbury’s (LON:SBRY) will post results tomorrow.
As of 12:41 GMT, Tesco’s share price had added 3.36 percent to 209.30p, outperforming the broader London market rally which has seen the benchmark FTSE 100 index add 0.93 percent to 6,874.35 points so far today. The group’s shares have lost about 2.5 percent of their value over the past year, as compared with about a 10.7-percent drop in the Footsie.
Latest Kantar Worldpanel data
Kantar Worldpanel announced in a statement today that consumers had spent an extra £450 million on groceries in the 12 weeks ended December 30, as compared with the prior-year period, while the supermarket sector grew at 1.6 percent, its slowest rate since March 2017. At Tesco, sales rose by 0.6 percent, boosted by an extra 125,000 customers.
Kantar said that Britain’s biggest supermarket was now the only retailer which increased its promotional activity year-on-year, bringing in discounts such as its 29-pence pricing strategy on vegetables. Tesco’s market share, however, slipped 0.3 percentage points to 27.8 percent.
Analysts on FTSE 100 grocer
The 14 analysts offering 12-month price targets for Tesco for the Financial Times have a median target of 270.00p on the shares, with a high estimate of 300.00p and a low estimate of 200.00p. As of January 5, the consensus forecast amongst 21 polled investment analysts covering the blue-chip supermarket has it that the company will outperform the market.