London, June 30, 2026, 15:07 BST
- Tesco PLC (LON:TSCO) spent £468.2 million of its £750 million buyback program, picking up 5.0 million shares on June 29 for 463.61p each.
- Tesco was last quoted at 462.40p/462.60p, edging up 0.30%. The FTSE 100 was up 0.54%.
- Worldpanel said Tesco sales rose 1.2% in the 12 weeks to June 14, slower than before. Its market share slipped 10 basis points.
- The buyback moves the share price more in the short term, as grocery volumes and promos are still weak.
Tesco PLC (LON:TSCO) shares are getting a boost from a buyback that has taken out about 1.6% of shares so far, a larger impact than the recent 10 basis point drop in grocery market share. The London Stock Exchange is set for a standard session on June 30, trading from 0800 to 1630 BST.
Tesco said Tuesday it bought 5 million shares on June 29, paying an average 463.61p. The highest price hit 465.60p, the lowest was 459.80p. The company now has 6.2825 billion shares out. Tesco has spent £468.2 million on the current buyback since it started on April 22.
| Buyback measure | Figure | Why it matters |
|---|---|---|
| June 29 shares bought | 5.0 mln | Represents 0.08% of shares out |
| June 29 cash used | £23.2 mln | Paid an average 463.61p per share |
| Programme spent so far | £468.2 mln | Used up 62.4% of £750 mln target |
| Shares bought since April 22 | 102.6 mln | That’s 1.63% of the stock |
| Remaining authority | £281.8 mln | Enough for around 60.8 mln shares at Monday’s price |
| Possible further cancellation | 0.97% | Figure is based on the latest share count |
There’s only a small spread here. Hargreaves Lansdown’s delayed quote had Tesco at a 462.50p mid-price—1.1p under the average price Tesco paid Monday. The HL page showed Tesco’s market cap at £28.93 billion, so Monday’s buyback made up about 0.08% of the equity.
Tesco is seeing support even as its sales data show weaker growth. Worldpanel by Numerator said UK grocery inflation eased to 3.0% in the four weeks to June 14, with grocery sales up 2.4%. That suggests volumes are down after price hikes. Promotions made up 30.4% of sales. Tesco’s 12-week sales growth slowed to 1.2%, while J Sainsbury PLC (LON:SBRY) saw a 2.0% rise in sales.
| Measure | Tesco | Sainsbury | Sector read |
|---|---|---|---|
| Latest company Q1 like-for-like sales | UK up 1.8% | Ex-fuel up 2.1% | Growth has slowed compared to previous quarters |
| Grocery/food growth | UK food up 2.6% | Grocery up 3.6% | Food still outpaces non-food |
| Non-food read | Non-food fell 0.5% | General merchandise and clothing dropped 3.7%; Argos off 0.5% | Discretionary categories remain soft |
| Market data to June 14 | Sales rose 1.2%; share down 10 bps | Sales up 2.0%; share up 10 bps | Tesco lost share, Sainsbury gained slightly |
| Share reaction in latest cited update | Tesco dropped 2.6% after Q1 | Sainsbury gained 2.4% Tuesday | Guidance and weaker non-food drove moves |
Tesco’s June 18 update came in below the 2.3% consensus for UK like-for-like sales growth. CEO Ken Murphy told Reuters last year’s base had been “truly exceptional” and called the result “not a sign of a slowdown per se.” Charles Stanley’s Garry White said the decision to keep guidance “should reassure investors” that Tesco can handle price competition and profit. Reuters
The transcript breaks down what’s selling. CFO Imran Nawaz said online sales are “growing at around 9,” big stores are up about 1.5%. Convenience is down a bit. CEO Murphy said weather mattered more to shoppers than World Cup sentiment.
Sainsbury’s offered a new read on peers with its update Tuesday. CEO Simon Roberts said demand “really hit record levels” in the heatwave, calling out pizza, ice cream and berries. The grocer held its 2026/27 underlying operating profit outlook at £975 million to £1.075 billion. Reuters
Inflation isn’t as tough as expected but hasn’t disappeared. Food prices in the UK rose 2.4% in June, according to British Retail Consortium data, the slowest increase since March 2025. BRC chief Helen Dickinson said “a competitive market is keeping inflation in check for now,” but pointed to cost pressures from national insurance, packaging taxes, weather, and geopolitics. Reuters
Matt Britzman, senior equity analyst at Hargreaves Lansdown, said Tesco’s Q1 miss looked like “a temporary blip rather than a bigger trend.” He called the 2.6% UK food growth solid and pointed to free cash flow as supporting both Tesco’s price position and its share buyback. HL
Tesco is sticking with its guidance for group adjusted operating profit, keeping the range at £3.0 billion to £3.3 billion for the year ending February 2027. Free cash flow is seen between £1.5 billion and £2.0 billion.
