Tesco anticipates shoppers will reduce alcohol purchases this Christmas
Tesco expects shoppers to cut back on alcohol this Christmas and has expanded its online grocery delivery capacity by 10% for the peak trading period. Chief executive Ken Murphy said customers are increasingly opting for low‑ and no‑alcohol alternatives such as ready‑mixed mocktails as part of a wider shift toward healthier lifestyles.
Tesco has increased its stock of key Christmas products and expanded its online grocery delivery capacity by 10% ahead of the peak trading period. The retailer is also investing in its rapid delivery service Whoosh and has signed new partnerships, including with Deliveroo, to meet demand for convenience. Tesco's premium Finest range sales rose 9% in the first half of the year, while first‑half sales increased 2% to £33.8 billion and adjusted operating profit climbed 6.5% to £1.78 billion, leading to an upgraded full‑year profit forecast of between £3.15 billion and £3.3 billion. Despite the move toward lower‑alcohol choices, Tesco anticipates that shoppers will continue to spend on festive treats such as chocolates, mince pies and party foods.
“I do think it could be a marginally healthier Christmas although customers do love to indulge,” Ken Murphy, Chief Executive said.
The shift toward lower‑alcohol choices has been developing since the pandemic, initially driven by younger consumers before spreading to older age groups. Murphy noted that the growing popularity of weight‑loss drugs has been cited as a key factor, though he said it is only one element behind broader changes in consumer habits.
What we know
Tesco has increased its stock of key Christmas products, including festive food, and expanded its online grocery delivery capacity by 10 per cent in preparation for the peak trading period.
Tesco’s premium Finest range recorded a 9% increase in sales during the first half of the year, reflecting continued demand for higher-end food products.
It reported a two per cent increase in first-half sales to £33.8bn for the 26 weeks to 29 August, while adjusted operating profit rose 6.5 per cent to £1.78bn.
Tesco also upgraded its full-year adjusted operating profit forecast to between £3.15bn and £3.3bn, compared with its previous guidance of £3bn to £3.3bn.