Tesco says it is the only one of the major chains to have grown its market share versus pre-pandemic levels over Christmas, claiming it took business from premium grocers.

The UK’s biggest retailer said like-for-like sales rose 4.3% in its third quarter to 26 November and were up 7.2% in the six weeks to 7 January.

Grocery rival M&S said its like for like food sales were up by 6.3% on the same basis over the 13 weeks to 31 December.

M&S said its clothing & home offering – long a drag on the group’s performance – enjoyed its highest market share for seven years with sales up by 8.6%.

Both Tesco and M&S, however, maintained their annual profit guidance.

One big name to reveal Christmas trouble was online fashion retailer asos.

It reported a 3% fall in revenue during the four months to the end of December, driven by an 8% plunge in UK sales over the four weeks to Christmas.

It blamed weak consumer sentiment and earlier cut-off dates for Christmas deliveries due to delivery problems caused by the Royal Mail strikes.

Halfords, the motoring and cycling chain, cut the range of its annual profit outlook to between £50m and £60m, from £65m to £75m.

It blamed soft demand for tyres and bikes. The company also warned that a failure to recruit enough skilled technicians at its auto-centres business would have an impact on the final quarter of its financial year.

The firms are the latest to report on their progress after a tough festive season for family budgets – squeezed by the energy-led cost of living crisis.

Please use Chrome browser for a more accessible video player

The overall picture for retailers’ performance ahead of Thursday’s trading updates has been one of resilience, however, suggesting that shoppers were prepared to relax the purse strings for Christmas amid record food inflation.

Read more
Three million ran out of credit on their energy prepayment meter last year
NatWest provides debt extension for struggling customers

It has led retail groups to express caution over consumer demand for the months ahead, while financial analysts have also questioned the extent to which company profitability has risen in line with sales.

While inflation has generally driven a surge in sales values in the company updates to date, retailers have given little away on their margins and growth in the volume of sales – the amount of goods sold.

That said, Sainsbury’s and JD Sports both adjusted upwards the guidance on their annual profit expectations on Wednesday.

Next and B&M did the same last week.

Another trend to have emerged over Christmas included a dive in online sales – possibly wholly explained by the impact of strikes at Royal Mail – with more visits to physical stores replacing some of that retail space.

Related posts:

Ministers urged to take ‘active role’ in protecting thousands of steel jobs Pod Point adds spark to float plan as it hires bankers Two of America’s most famous investors go head-to-head Thames Water agrees £11m compensation after customers overcharged Toyota slashes production as it becomes latest carmaker hit by global chip shortage Northern Ireland to scrap traffic light travel system as holiday bookings soar Omicron variant and rising prices combine to cool activity in UK services sector Moroccan energy link, NatWest’s profits double and London’s super sewer Inflexion blows final whistle with sale of Goals Soccer Centres Heathrow passenger numbers improving but still below pre-pandemic levels Inflation weighing on Ocado and its customers Another big rate hike expected as US inflation proves more sticky than forecast