Tesco posted a 1% lift in like‑for‑like revenue for its first quarter, driven by brisk online sales. Group revenue excluding VAT and fuel hit £16.83 billion ($22.37 billion) over 13 weeks to May 30, up from the same period a year earlier. The U.K. chain celebrated a 1.8% rise in domestic sales in 2024.

Online performance outpaced stores, with U.K. e‑commerce growing 8.9% and Central Europe surging 17%. The 0.8% rise in Central‑European sales reflects a modest rebound after a downturn, while the U.K. saw a 1.8% lift, signalling resilience amid thin margins and supply‑chain pressures for customers and competitors.

The results underscore Tesco’s pivot to digital, a strategy that cushions the chain against competitive pressure from discounters and online rivals. Investors will watch whether the online momentum translates into sustained profitability, as the retailer balances cost controls with growth initiatives.

After the announcement, Tesco shares edged higher, reflecting confidence in the online lift. Analysts note that a 1% rise in group sales may modestly lift margins, yet the real test lies in converting e‑commerce gains into long‑term profit. The retail sector watches closely as competitors adjust their own digital strategies in January 2025, signalling a broader trend in retail efficiency.