Tesco and M&S see sales soar over Christmas

Tesco and Marks & Spencer both saw strong trading over Christmas as higher prices boosted their sales.

Tesco said like-for-like sales at its UK stores rose by 5.3% while M&S’s grew by 7.2%.

The UK’s largest supermarket said there had been strong demand for its budget items and evidence shoppers preferred to shop in-store rather than online.

Meanwhile, M&S said it had performed well across food, clothing and home.

The cost of living is rising at its fastest pace in 40 years, putting pressure on household budgets.

This week, industry body the British Retail Consortium said a sharp rise in UK retail sales in December was largely due to goods costing more.

Tesco said it had seen “strong” Christmas trading as it offered more deals to fend off competition from discount rivals Aldi and Lidl.

The retailer said this growth included “particular strength” in fresh food, with 8.1% growth, as shoppers continued to spend on essentials.

The group also highlighted a 7.4% increase in sales by volume of its low everyday prices range after launching a “price lock” commitment on these products in October

Boss Ken Murphy said: “I’m really pleased with our performance over this period – particularly the further strong growth at Christmas.”

Marks & Spencer saw a 6.3% rise in like-for-like sales across its food halls in the 13 weeks to 31 December, seeing record Christmas sales of more than £80m on 23 December.

The retailer, which is seen as a bellwether of the UK High Street, saw clothing and home comparable store sales rise by almost 9%.

But the group said it was continuing to focus on restructuring its business and cutting costs in the face of soaring inflation.

The group is looking to make savings of about £150m in the next few years to offset soaring prices and help it weather tougher trading.