Britons to have ‘marginally healthier’ Christmas with less alcohol, Tesco says

UK consumers will be keen to celebrate Christmas this year given an uncertain global environment but will likely opt for “marginally healthier” choices with less alcohol consumption, Tesco has said.

The boss of the UK’s biggest supermarket chain said people had been “pretty resilient” in the face of geopolitical worries and rising living costs.

It comes after the company reported higher sales for the first half of the year and raised its annual profit outlook.

Ken Murphy, Tesco’s chief executive, said: “I think consumers in the UK have been pretty resilient in a very uncertain environment.

“And my sense is that customers will want to enjoy Christmas given all that’s going on in the world around them, I think they will want to celebrate whatever festive occasion that they celebrate for the next three months.”

The chief said food inflation was “well below” the rate of wage inflation, “so I think that’s something to feel really good about”.

“I think this a really highly competitive industry and that is also a contributing factor to keeping a lid on food inflation,” he said.

For the six months to August 29, Tesco’s sales excluding fuel and VAT totalled £33.8 billion.

Sales were 1% higher when compared like-for-like with the same period last year, and 1.5% higher in the UK alone.

Tesco’s chief executive said UK consumers may have a “marginally healthier” Christmas this year (Aaron Chown/PA)

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Online sales surged by 8.4% in the UK with average grocery orders growing, and sales for its rapid delivery arm Whoosh soaring by 37%.

Mr Murphy said the retailer launched around 800 new and improved products during the first half of the year, including expanding healthy eating ranges such as a fibre-enriched bakery items, higher protein yoghurts, and more nutritious ready meals.

He also highlighted growing demand for low and no-alcohol options.

“I do think it could be a marginally healthier Christmas although customers do love to indulge,” Mr Murphy said.

This pointed to a broader trend of healthy living, Mr Murphy said, adding: “I think it probably started in Covid and has built momentum since then and, as with many trends like these, they start with younger people and work their way up.”

He said Tesco was expecting to see a more “moderate Christmas from an alcohol point of view” amid the wider trend.

Nevertheless, the supermarket is preparing to launch a range of new festive products like new desserts and party food.

It comes after sales of its “Finest” range jumped by 9% year-on-year for the first half.

Meanwhile, fuel sales surged by nearly a fifth which Tesco attributed to higher oil prices pushing up the cost for consumers.

Tesco said a strong financial performance for the first half meant it was now expecting profits of between £3.15 billion and £3.3 billion for the full year – an improvement on the £3 billion to £3.3 billion range it had previously guided.