London, June 8, 2026, 15:13 (BST)
Tesco shares traded flat in London on Monday. Investors looked at the newest buyback update as new grocery-market figures kept Britain’s top supermarket on top of its major competitors.
The stock was trading near 454p in the afternoon. AJ Bell’s board had live quotes at 454.30p to sell and 454.40p to buy. Shares started the session at 457.90p, with an earlier high at 460p.
Tesco’s steady cut in its share count matters now, more than any sharp price swing. A buyback is when a company spends cash to buy its own stock, usually sending cash to shareholders and lowering shares outstanding.
Tesco said in a filing it repurchased 2.0 million shares on June 5 at an average price of 455.68p each, part of its £750 million buyback plan, and plans to cancel the stock. Tesco has now bought 58.8 million shares for £267.6 million since starting the programme, according to the filing.
Buybacks can lift earnings per share, or EPS, as long as profits hold steady, by cutting the number of shares. That’s what has traders watching this move on a day with few headlines from companies.
FTSE 100 edges up as oil prices bounce The FTSE 100 edged up near 10,388, after giving up early losses that followed fresh worries over the Middle East and oil price moves, The Times reported.
Tesco got a lift from the latest grocery tape. IGD said Monday, citing Worldpanel data, that Tesco’s grocery market share is now 28.5%. That’s up 0.2 points from last year. Sainsbury’s is at 16.1%, Lidl 7.8%. Asda slipped to 11.5%.
Tesco stays in a solid spot, but the fight isn’t easy. Chief Executive Ken Murphy told analysts in April, “competition remains intense,” and said Tesco could “never be complacent” on price. That’s a clear message about ongoing pressure from value-focused competitors.
Tesco shares are still trading on April numbers. The company posted 52-week sales excluding VAT and fuel of £66.6 billion, up 4.3% at constant rates. Adjusted operating profit came in at £3.15 billion, Tesco’s preferred measure before one-offs. The full-year dividend is set to rise 5.8% to 14.5p.
Murphy said Tesco was working to “keep down the cost of the weekly shop.” The company also raised its medium-term free cash flow target to £1.5 billion-£2.0 billion. Free cash flow is what’s left after operating and investing in the business. Investegate
But the risk on the downside is still there. Higher food or fuel inflation could make things harder for shoppers and push Tesco to spend more on cutting prices. Legal and wage-cost issues also remain. Tesco has set a broad £3.0 billion to £3.3 billion adjusted operating profit target for 2026/27, citing Middle East uncertainties. It’s also fighting a major UK equal-pay lawsuit over retail and warehouse pay.
Tesco’s share price is quiet for now. Most of the lift is coming from capital returns. In the week ahead, the market is going to be watching daily buyback filings and keeping an eye on whether grocery-share data points to Tesco holding its position without giving up margin.
