Tesco well-positioned for growth, says Murphy – Daily Business

Ken Murphy: investing in the customer

Supermarket group Tesco posted a strong first six months trading and said it is well-positioned for the second half, despite the squeeze on consumer spending.

Group adjusted operating profitfor the 26 seeks to 29 August rose 6.3% at constant rates to £1.78 billion (£1.67bn), with statutory pre-tax profit up 11.5% to £1.455bn (£1.3bn).

The company said the strong financial performance “positions us well as we go into the second half, supporting our ongoing investment in the customer offer and the capabilities that will drive future growth.

“We now expect group adjusted operating profit between £3.15bn and £3.30bn (versus the £3.0bn to £3.3bn range we communicated in April 2026).

Ken Murphy, chief executive, said: “I am proud that we have achieved our highest-ever customer satisfaction score, reflecting our continued focus on value, quality and service.

“Our strong performance enables us to keep investing in the customer offer and the capabilities that will drive future growth.

“Against an uncertain external backdrop, we have … continued to innovate across all our ranges, launching over 800 new and improved products during the half.”

The Finest range continues to outperform, with sales up 9%, while digital channels are important growth drivers for Tesco, with online sales growing 8% in the half. There has been strong growth in Whoosh, up 37% in the half and on track to deliver sales of over £500m this year.

Murphy added: “We are also making strong progress on AI-enabled personalisation, extending Your Clubcard Prices and beginning the customer rollout of our meal planning assistant, helping customers manage their busy lives. Tesco Media grew strongly in the half, attracting new advertisers and offering improved analytics and automation through an enhanced self-service platform.”

Market reaction

Nick Sherrard, managing director of Label Sessions, said: “”Tesco has turned in another solid set of results, showing it can keep growing even when the wider economy feels uncertain.

“Sales, profits, and cash generation are all moving in the right direction, and record customer satisfaction suggests shoppers are responding to its mix of low prices, better quality, and easier ways to shop.

“Bigger picture, the company’s growth has quietly become a technology story. Clubcard is one of the richest customer datasets in the UK and its retail media business is now using that to sell very effectively to suppliers.

“On the consumer side, more personalised offers, wider rewards, and tools like the new AI meal planner seem to be landing well with shoppers, helping Tesco deepen relationships and keep customers choosing it over rivals.

“With solid online growth, new delivery partnerships, and continued investment in new products, Tesco is in a strong position. But its future looks less like a supermarket chain and more like a consumer data platform. A lot of other retailers will be looking to Tesco’s success as a case study in how technology can transform their own fortunes in a highly competitive UK grocery sector.”

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