Tesco (TSCO.L) shares moved higher on January 6, 2026, trading around 453 GBX by midday, as investors reacted positively to early data pointing to a strong holiday season and continued market share gains.
The rally comes just days before the retailer is set to publish its official Q3 and Christmas trading statement on January 8.
Preliminary figures covering the 12 weeks to December 28, 2025, indicate that Tesco’s sales rose 4.3% year-on-year, while its UK grocery market share increased to 28.7%. That level marks the supermarket’s highest market share since March 2015, reinforcing its position as the country’s dominant food retailer.
Investor optimism has also been supported by analyst sentiment. The current market consensus rates Tesco as a “Buy,”with an average price target of approximately 473.75 GBX, implying further upside from current levels if the upcoming trading update confirms the strong performance.
The recent momentum reflects confidence in Tesco’s strategic execution. Competitive pricing, continued investment in product quality, and the effectiveness of the Clubcard loyalty program have helped the group attract customers from rivals such as Asda, particularly during a cost-sensitive holiday period.
Adding to the positive backdrop, Tesco continues to reduce its share count through its £1.45 billion share buyback program. The company purchased additional shares on January 5, 2026, a move widely interpreted by markets as a signal of management’s confidence in the business and its valuation.
With expectations already elevated, attention now turns to Thursday’s trading statement, which will determine whether Tesco’s strong Christmas performance can fully justify the recent gains in its share price.
