Citi has taken a selective stance on Europe's retail and brands sector for 2026, arguing that a sluggish economic backdrop means investors should favour companies with clear structural advantages. Its top picks are Inditex (buy) and Tesco PLC (LSE:TSCO) (buy), while Associated British Foods PLC (LSE:ABF) is rated 'sell'.
Tesco PLC (LSE:TSCO) and J Sainsbury PLC (LSE:SBRY) are currently enjoying a "supportive environment" from a pace of new discounter store development well below historical averages, according to a new research note from UBS. Using geospatial data from the UBS 'Evidence Lab' unit, UBS retail analysts observed that industry-wide space growth is running at around 1.0%, significantly below the pre-Covid average of 2.6%.
Tesco PLC (LSE:TSCO) shares fell after grocery market data showed its rate of sales growth slowing in recent weeks, while J Sainsbury PLC (LSE:SBRY) popped higher as growth held steady, though wider spending was curtailed due to pre-Budget jitters. Grocery price inflation held steady at 4.7% last month, according to the Worldpanel supermarket till report from Numerator, formerly Kantar, with supermarket sales rose 3.4% over the four-week period, below the rate of inflation.
| Consumer Staples Distribution & Retail Industry | Consumer Staples Sector | Mr. Ken Murphy CEO | OTC PINK Exchange | 881575302 CUSIP |
| GB Country | 340,000 Employees | 16 May 2025 Last Dividend | 16 Feb 2021 Last Split | - IPO Date |
Tesco PLC is a multinational corporation that operates across various sectors including retail, banking, and consultancy services. Established in 1919, the company has grown to establish a significant presence in the retail market, particularly in the United Kingdom, but also extending to the Republic of Ireland, the Czech Republic, Slovakia, and Hungary. The company's operations encompass around 4,752 stores and a robust online platform, through which it offers a wide array of food products. Beyond its retail operations, Tesco PLC expands its portfolio to include banking and insurance services predominantly within the UK, alongside engaging in food and drink wholesaling activities. Its headquarters is situated in Welwyn Garden City, the United Kingdom, placing it at the center of its broad-ranging operations that also include convenience store networks and professional services in data science, technology, and consultancy.
As a diversified business entity, Tesco PLC's product and service offerings are extensive and cover multiple sectors:
At the core of Tesco PLC's offerings are its retail operations, through which it supplies an expansive variety of food products. These products are accessible both in physical stores across several European countries and online, catering to a diverse range of consumer needs and preferences.
Under its banking and insurance wings, Tesco PLC provides customers in the United Kingdom with a suite of financial products. These services include but are not limited to savings accounts, loans, credit services, and insurance products, underscoring the company's efforts to offer comprehensive solutions beyond its retail roots.
In addition to direct consumer retail, Tesco engages in wholesaling activities, supplying food and drink products to various entities. This facet of its operations enables the corporation to leverage its supply chain and distribution capabilities to serve a wider market, including other retail outlets and businesses.
Tesco PLC extends its retail presence through a network of One Stop convenience stores. These establishments are designed to cater to quick and immediate shopping needs, offering a range of everyday items in convenient locations.
Recognizing the importance of technology and data in contemporary commerce, Tesco PLC also delivers professional services such as data science, technology solutions, software development, and consultancy. These services aim to support businesses in optimizing their operations and leveraging technology for strategic advantage.