Tesco on reported a fall in like-for-like (LFL) sales of 1.8 per cent at it wholesale arm Booker for the financial year 2024/25, weighed down by a continued slump in the tobacco market and weaker demand in parts of the fast-food sector served by its Best Food Logistics unit.
Despite this overall decline, Booker saw growth in its core segments. Core retail LFL sales rose by 0.9 per cent, while core catering posted a stronger 2.1 per cent increase, supported by price-lock campaigns and improving availability. The group also added 566 net new retail partners during the year.
Whilst the independent convenience sector is seeing some trading softness, Booker said its symbol brands performed strongly. Booker retail customer satisfaction continued to improve, with gains year-on-year.
Booker’s total sales for the year stood at £8.99 billion, down 1.8 per cent per cent year-on-year. The decline was primarily driven by an 8.8 per cent drop in tobacco sales and a 5.1 per cent decrease at Best Food Logistics. However, Booker’s catering sales were boosted by the integration of Venus Wine and Spirit Merchants, acquired in June 2024, which expanded its offering to the on-trade sector.
Tesco Group’s overall performance remained strong, with adjusted operating profit rising 10.9 per cent at constant rates to £3.13 billion and group sales increasing by 4 per cent to £63.64 billion. Profit after tax increased 37 per cent (at actual rates) to £1.6 billion in the 12 months to February.
Tesco chief executive Ken Murphy noted that Tesco had achieved its highest market share in nearly a decade, driven by innovation and investment in quality and pricing across its businesses.
“We are making significant progress on our long-term growth opportunities, further enhancing our digital capabilities with increased personalisation, further improvements to our online experience and an expanded retail media offering,” he added.
However, Britain's largest retailer lowered its 2025/2026 guidance on increased supermarket competition, as it cautioned that a “further increase in the competitive intensity of the UK market”, will hit its next earnings.
