This year is looking rosy so far for the UK’s largest supermarket group by market value and market share, Tesco (TSCO), and investors will be hoping it stays that way when the company reports its full-year earnings on 10 April.

The year started with a report of record Christmas sales, up 6.8% in the six weeks to 6 January, and the group recording its busiest ever day on 22 December thanks to continued investment in pricing and its Clubcard loyalty scheme.

Chief executive Ken Murphy described the grocery market as ‘a battle for every basket’ but said the firm had great momentum off the back of Christmas and raised the outlook for full-year operating profit to £2.75 billion, above the previous range of £2.6 billion to £2.7 billion.

The latest Kantar grocery sales data shows Tesco more than holding its own against discounters Aldi and Lidl, with a higher market share than it had this time last year despite roughly the same store footprint.

The sale of its banking business to Barclays (BARC) is expected to be earnings-enhancing, with the proceeds going towards buying back more shares, as well as freeing up large amounts of capital from the firm’s balance sheet.

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