8th Jan 2026 07:56
(Alliance News) - Tesco reports higher sales for the Christmas period and raises its profit guidance, while M&S sees Fashion, Home & Beauty sales fall but Food sales rise and AB Foods reports a challenging start to the financial year for Primark.
Here is what you need to know before the London market open:
----------
MARKETS
----------
FTSE 100: called down 0.4% at 10,009.71
GBP: down at USD1.3453 (USD1.3472 at previous London equities close)
----------
ECONOMICS
----------
UK house prices unexpectedly fall in December, while annual growth slows, numbers from Halifax show. House prices dipped by 0.6% in December, with the average price falling to GBP297,755 from GBP299,544 in November, the lowest price since June. A rise of 0.2% was expected for December, according to market consensus cited by FXStreet. Annual house price growth slowed to 0.3% in December from 0.6% in November. "While this may feel like a subdued close to the housing market in 2025, overall activity levels were resilient over the last year and broadly in line with the pre-pandemic average," Halifax analyst Amanda Bryden said. "Various forces are poised to somewhat buoy the market heading into 2026. While December’s monthly fall in prices was likely related to uncertainty in the latter part of the year, this should now be starting to unwind. Further, mortgage rates are already reducing following the latest base rate cut and there are an increasing number of lending options available for those borrowing at a higher loan-to-value."
----------
BROKER RATINGS
----------
Deutsche Bank Research cuts Antofagasta to 'sell' (hold) - price target 2,800 (2,400) pence
----------
Jefferies raises Safestore to 'buy' (hold) - price target 875 (682) pence
----------
COMPANIES - FTSE 100
----------
Tesco expects to deliver profit at the upper end of its guidance as it reports higher sales over the Christmas period. The supermarket chain says like-for-like sales excluding VAT and fuel rise 2.4% in the six weeks to January 3 compared to a year ago. Like-for-like sales on the same basis were up 3.2% in the UK and 3.8% in the Republic of Ireland. Sales were down 2.1% at Booker and 0.8% higher in Central Europe. For the third quarter, which is the 13 weeks to November 22, Tesco says like-for-like sales excluding VAT and fuel for the group were up 3.1%, with 3.9% growth in the UK. In the total 19 weeks to January 3, like-for-like sales excluding VAT and fuel were up 2.9% for the group and 3.7% in the UK. Tesco says "following a strong Christmas performance" it now expects to deliver financial 2026 group adjusted operating profit at the upper end of its GBP2.9 billion to GBP3.1 billion guidance range issued in October. It continues to expect free cash flow within its medium-term guidance range of GBP1.4 billion to GBP1.8 billion. Tesco says it outperformed the market on both a value and volume basis, as it says its 12-week market share was up 23 basis points to 28.7%, with four-week market share up 31 basis points to 29.4% in the UK. Online sales climb 11% while home & clothing like-for-like sales rise 2.1%. "I am delighted with the strong Christmas we delivered for our customers. Our investments in value, quality and service drove further gains in customer satisfaction and strong growth in fresh food, contributing to our highest UK market share in over a decade," says Chief Executive Ken Murphy.
----------
Marks & Spencer reports higher Food sales in the third quarter, but Fashion, Home & Beauty sales fall. For the group, excluding the Ocado Retail joint venture, sales rise 3.3% to GBP4.15 billion in the 13 weeks to December 27. Ocado Retail was consolidated by M&S in April, so there is no prior year comparative. Including Ocado Retail, group sales jump 24% to GBP4.99 billion. Food sales rise 6.6% to GBP2.72 billion, and increase 5.6% on a like-for-like basis. Fashion, Home & Beauty sales fall 2.5% to GBP1.27 billion, and drop 2.9% on a like-for-like basis. International sales rise 0.9% to GBP158 million. "Sales growth was underpinned by strength in core grocery categories, with innovation and quality upgrades - such as Italian ready meals, in-store bakery and deli," M&S says. The retailer says Fashion, Home & Beauty performance reflects reduced high street footfall and the long tail impact on stock data and management issues following the cyberattack earlier in the year. "As we enter 2026, we plan to accelerate the reshaping strategy against the context of an uncertain consumer environment," M&S says. Chief Executive Stuart Machin adds: "Food sales were strong and the business continues to outperform, hitting a new market share milestone in the period... Fashion, Home & Beauty is getting back on track as we work through the tail end of recovery. Sales overall were slightly down but online performance continued to improve as digital sales recovered. We planned a bigger sale this year, with strong sell-through already making way for our new season lines."
----------
Associated British Foods says Primark has had a "challenging start" to the financial year with a "mixed performance". The firm says Primark delivered "encouraging" UK sales growth of around 3% in the 16 weeks to January 3, with like-for-like sales growth of 1.7% in a "difficult clothing market". In continental Europe, like-for-like sales declined 5.7% in the period. AB Foods says its actions and investments in Europe are "only recently underway" and consumer confidence remains weak. Primark sales growth in the period was "below our previous expectations", AB Foods says. It now expects Primark's sales growth in the first half of 2026 to be in the low single digits. The firm says it "significantly increased markdowns" to manage inventory levels, which impacted profitability. If Primark's current sales trends were to continue in the second half of the year, AB Foods says it would expect the adjusted operating profit margin for the full year to be around 10%, similar to the first half. It says its Food businesses experienced "mixed trading" in the first quarter. It now expects both the Grocery and Ingredients segments to deliver adjusted operating profit for the full year that is "moderately below" last year. "While we expect the tough trading conditions to continue in the short term, we remain confident in the overall prospects for the group," says Chief Executive George Weston.
----------
COMPANIES - FTSE 250
----------
Greggs says it expects to meet its full year guidance as it reports higher sales for the 2025 financial year. The pastry provider says total sales were up 6.8% to GBP2.15 billion in the twelve months to December 27 from GBP2.01 billion a year ago. Company-managed shop like-for-like sales rise 2.4%. Total sales in the fourth quarter rise 7.4%, while company-managed shop like-for-like sales were up 2.9%. Greggs says market conditions "remain challenging". The firm opened 207 new shops in the year, with 50 relocations and 36 closures, resulting in 212 net new shop openings. At the end of 2025, Greggs had 2,739 shops trading. It expects to open around 120 net new shops in 2026. "Subdued consumer confidence continued to impact the food-to-go market, as did weather extremes earlier in the year. Against this backdrop, Greggs increased its market share of visits, including at breakfast and in the evening," the firm says. Looking ahead, Greggs expects like-for-like cost inflation to be lower than in 2025. It expects consumer confidence to remain a market headwind in the year ahead, which will "put some temporary pressure on margins" along with the costs of new supply chain capacity. "Taking all of this into account, in the year ahead we expect to deliver profits at a similar underlying level to 2025, with any year-on-year improvement contingent on a recovery in the consumer backdrop," it adds.
----------
OTHER COMPANIES
----------
Cerillion wins its "largest ever" contract, worth GBP42.5 million, with Oman Telecommunications. The London-based billing, charging and customer relationship management software company says Omantel is Oman's first integrated telecommunications services provider. Cerillion says the contract win helps to underpin existing market forecasts for financial 2026 and beyond. It will supply and install its BSS/OSS suite and provide ongoing support and maintenance over the five-year subscription term. Cerillion says it was selected after an extensive tender process. "We are delighted to be partnering with Omantel at this exciting time and believe that our selection is testimony to the strength of our offering and services," says Chief Executive Officer Louis Hall.
----------
By Michael Hennessey, Alliance News reporter
Comments and questions to [email protected]
Copyright 2026 Alliance News Ltd. All Rights Reserved.
Related Shares:
AntofagastaSafestoreTescoMarks & SpencerAB FoodsGreggsCerillion