Executive Summary

• Tesco reported UK comparable sales growth of 2.3% in 3Q18, slightly below consensus expectations but up from 2.1% in the prior quarter.
• In the subsequent six-week Christmas period, Tesco UK saw comp growth moderate to 1.9%.
• In 3Q18, the company reported its strongest UK hypermarket growth in a number of years. Tesco also noted strong demand in the UK in the core food category over the Christmas peak.