Booker keeps profit level steady as tobacco decline weighs on Tesco half-year sales
Tesco's interim results for the six months to 29 August 2026 showed Booker's sales falling while its operating profit edged higher. Tobacco sales dropped 8.9% to £740m, and total sales excluding tobacco declined 1.4%. Booker added 275 net new retail partners and kept its profit contribution to the wider Tesco group steady.
Tesco’s half-year report, released 8 October 2026, covered the 26 weeks ending 29 August 2026. Booker’s tobacco revenue fell 8.9% to £740m, while sales excluding tobacco slipped 1.4%. The wider convenience estate, including One Stop, saw like-for-like sales fall 1.7%, largely because tobacco demand kept shrinking. Over two years, Booker’s non-tobacco sales rose 2.7%.
Booker’s symbol groups—Premier, Londis, Budgens and Family Shopper—performed well, helped by 275 net new retail partners. Tesco said better buying terms and its Save to Invest efficiency work lifted operating profit slightly despite lower volumes, preserving Booker’s stable contribution to the group. Tesco Express sales were broadly level, aided by 1.4 percentage points from new store openings.
Count? First para: Tesco’s(1) half-year(2) report,(3) released(4) 8(5) October(6) 2026,(7) covered(8) the(9) 26(10) weeks(11) ending(12) 29(13) August(14) 2026.(15) Booker’s(16) tobacco(17) revenue(18) fell(19) 8.9%(20) to(21) £740m,(22) while(23) sales(24) excluding(25) tobacco(26) slipped(27) 1.4%.(28) The(29) wider(30) convenience(31) estate,(32) including(33) One(34) Stop,(35) saw(36) like-for-like(37) sales(38) fall(39) 1.7%,(40) largely(41) because(42) tobacco(43) demand(44) kept(45) shrinking.(46) Over(47) two(48) years,(49) Booker’s(50) non-tobacco(51) sales(52) rose(53) 2.7%.(54) Second: Booker’s(1) symbol(2) groups—Premier,(3) Londis,(4) Budgens(5) and(6) Family(7) Shopper—performed(8) well,(9) helped(10) by(11
The shift away from tobacco could affect convenience retailers, independent partners and their local customers. Smaller shops may face pressure as a once-reliable category shrinks, while growth in non-tobacco groceries and new retail partners could help offset some losses. For shoppers, continued investment in convenience networks may support access to everyday goods. Public-health trends toward quitting or vaping may bring wider benefits, though retailers and staff may need to adapt to changing demand. Tesco’s steady Booker contribution may help sustain supply and store support, but the pace of decline remains a risk. Count: The1 shift2 away3 from4 tobacco5 could6 affect7 convenience8 retailers,9 independent10 partners11 and12 their13 local14 customers.15 Smaller16 shops17 may18 face19 pressure20 as21 a22 once-reliable23 category24 shrinks,25 while26 growth27 in28 non-tobacco29 groceries30 and31 new32 retail33 partners34 could35 help36 offset37 some38 losses.39 For40 shoppers,41 cont