Tesco Finest range is winning over M&S and Waitrose shoppers, say supermarkets

Ken Murphy, chief executive of Tesco, says the supermarket is now its most competitive ever. Credit: Ben Stevens/Parsons Media/Reuters

The retailer said on Friday its Finest products were encouraging shoppers to switch between two «premium» retailers, with sales of the Finest lines up 12% in the three months to May 25.

It comes as Waitrose battles for market share with a resurgent Marks & Spencer, which claims to be the best supermarket for the middle class.

Stuart Machin, chief executive of M&S, told The Telegraph earlier this month: «You could argue we should have overtaken them by now.»

He said: «All players, both discounters and full-line grocery stores, are very competitive and remain so, and we expect that we will have to fight for the right to win [shopping baskets] for the foreseeable future.”

“I would not make any predictions regarding competition.”

Two German discounters are putting pressure on traditional grocers to launch price-matching schemes and cut prices.

Tesco has steadfastly maintained its 27% market share throughout the cost of living crisis, while Morrisons and Asda have seen their share decline. Aldi has overtaken both grocery chains to become the UK's third largest supermarket.

It comes after Tesco's profits surged last year from £882m to £2.3bn for the year to February 2024. The financial performance brought Mr Murphy's total salary to nearly £10m, around double the previous year.

This has angered some campaign groups, who have accused the supermarket of paying him a disproportionate amount during the cost of living crisis.

Mr Murphy said on Thursday he was «absolutely agree» he was «well paid» ahead of a shareholder vote on Tesco's remuneration report and policy .

He added that the retailer had invested «very significantly» in tackling high levels of shoplifting, but warned it was still a problem. Both Labor and the Conservatives pledged to crack down on shoplifting in their manifestos.

An M&S spokesman said: “An extra million customers shopped at M&S ​​last year, helping to increase the value and size of the market. , including from larger baskets, as more families seek exceptional quality and value they can trust.»

Waitrose has been approached for comment.