London, July 1, 2026, 23:03 (BST)
- Tesco PLC (LON:TSCO) picked up 5 million shares on June 30. The company has now spent £491.3 million on its £750 million buyback plan, covering about 65.5% so far.
- The stock last changed hands after the London close at 460.00p/460.20p, up 0.60p, or 0.13%. Market cap stood at £28.69 billion.
- Worldpanel by Numerator said Tesco sales rose 1.2% in the 12 weeks to June 14, slower than grocery inflation of 3.0% reported for the last four weeks.
- J Sainsbury PLC (LON:SBRY) posted new numbers for the sector Tuesday, reporting Q1 like-for-like sales excluding fuel up 2.1%. Grocery sales gained 3.6%.
Tesco PLC (LON:TSCO) is leaning on its buyback programme to offer support as food retail volumes remain weak. On Wednesday, the company reported it bought 5 million shares on June 30 at an average price of 461.92p. Since April 22, Tesco has repurchased 107.6 million shares for £491.3 million. The group has £258.7 million of the £750 million programme left, equal to about 0.9% of its latest quoted market value.
London’s quote was closed and at least 15 minutes delayed. Regular LSE hours are 0800 to 1630 BST, Monday to Friday. Hargreaves Lansdown listed Tesco at 460.00p to sell and 460.20p to buy, with 15.9 million shares traded. The FTSE 100 (INDEXFTSE:UKX) ended 0.2% lower.
The buyback is reducing Tesco’s share count at a time when grocery revenue isn’t driving growth. Tesco’s most recent RNS shows the buyback has lowered the equity base by roughly 1.7% compared to the level before the scheme. Nearly two-thirds of the cash set aside for repurchases is already spent, although the programme is supposed to go until April 2027.
| Tesco buyback gauge | Latest figure |
|---|---|
| Programme size | £750 million |
| Spent since April 22 | £491.3 million |
| Shares bought since April 22 | 107.6 million |
| Programme used | 65.5% |
| Cash left | £258.7 million |
| Shares in issue after June 30 purchase | 6.2775 billion |
| June 30 purchase | 5.0 million shares at a 461.92p average |
Grocery inflation in the UK ran at 3.0% in the four weeks to June 14, Worldpanel by Numerator reported. Grocery sales were up 2.4% for the period, meaning volumes fell after accounting for inflation. Tesco saw sales growth slow to 1.2% over the 12 weeks to June 14, with its market share down by 10 basis points. Sainsbury’s sales rose 2.0%, lifting its share by 10 basis points.
| Latest grocery read-through | Tesco | Peer or market comparison |
|---|---|---|
| Worldpanel sales up 1.2% for Tesco in 12 weeks to June 14 | +1.2% | Sainsbury’s up 2.0% |
| Market share dropped by 10 bps | -10 bps | Sainsbury’s gained 10 bps |
| Lidl GB was fastest physical grocer in the data | — | Lidl GB sales up 8.6% |
| Ocado Group PLC (LON:OCDO) fastest overall grocer | — | Ocado Group PLC (LON:OCDO) sales up 13.5% |
| UK grocery inflation at 3.0% over last four weeks | — | +3.0% |
Tesco’s June 18 statement asked the same question to shareholders again. UK like-for-like sales rose 1.8% for the 13 weeks ending May 30, missing the 2.3% analysts expected. Chief Executive Ken Murphy called last year’s growth and share gains “exceptional” and said the weaker pace is “not a sign of a slowdown per se”. He also said Iran-war-related inflation “hasn’t materialised as an issue” at Tesco. Reuters
Sainsbury’s latest update left some pressure in place. The UK’s No. 2 grocer said like-for-like sales excluding fuel rose 2.1% in the first quarter. Grocery was up 3.6%, but general merchandise and clothing fell 3.7%, and Argos slipped 0.5%. CEO Simon Roberts said current trading got a lift from the heatwave. “Demand really hit record levels,” he said, pointing to strong sales in pizza, ice cream and berries. Reuters
| Q1 trading comparison | Tesco | Sainsbury’s |
|---|---|---|
| Like-for-like sales | Group up 1.0%, UK up 1.8% | Ex fuel up 2.1% |
| Grocery / food | UK food up 2.6%, fresh food up 3.6% | Grocery up 3.6% |
| Premium / online | Finest up 9%, online up 8.9% | Wasn’t in Sainsbury’s update |
| Non-food read | Non-food slipped 0.5% on Tesco call | General merchandise and clothing down 3.7%, Argos down 0.5% |
| FY profit guidance | Adjusted operating profit £3.0bn to £3.3bn | Underlying operating profit £975m to £1.075bn |
The split is a mixed bag for Tesco. Reuters said around a quarter of Sainsbury’s sales come from non-food, so it’s more exposed than Tesco to softer discretionary spending. Tesco isn’t hit as hard there, but its latest Worldpanel sales gain still lags grocery inflation. That means less space for price cuts unless online, Finest, retail media, and the buyback pick up more slack.
Garry White, chief investment commentator at Charles Stanley, said Tesco’s steady guidance “should reassure investors” that the retailer is managing price competition and profits. Matt Britzman, senior equity analyst at Hargreaves Lansdown, called the Q1 shortfall a “temporary blip rather than a bigger trend,” but noted the profit outlook’s midpoint signals a slight drop. Reuters
Tesco said in a filing Wednesday that CFO Imran Nawaz picked up 14,041 shares via dividend reinvestment on June 26 and June 29, paying roughly £4.618 a share. Tesco plans to report interim results Oct. 8.
