Saturday 25 October 2014

Tesco's pain continues as sales slide - Kantar Worldpanel

Published 29/07/2014 | 11:32

Tesco
Tesco

SUPERMARKET chain Tesco saw its sales decline worsen over the last four weeks, industry data showed on Tuesday, hurt by the lowest market growth in a decade.

The data from market researcher Kantar Worldpanel showed Tesco's sales fell 3.8pc year on year in the 12 weeks ending July 20, with its market share dipping to 28.9pc from 30.3pc.

The fall was worse than the 1.9pc decline Kantar data showed for Tesco sales in the 12 weeks to June 22 last month.

Last week Tesco ditched Chief Executive Philip Clarke and issued its second profit warning in two years, saying sales in the first half of the year were "somewhat below expectations".

Overall market growth for the latest period fell to 0.9pc - the lowest figure for 10 years, Kantar said, as British consumers shop around for cut price deals to save money and waste less by buying little and often in local convenience stores or online.

No. 4 player Morrisons, which like Tesco is undergoing a turnaround plan to improve its fortunes, also saw its sales fall by 3.8pc in the 12 week period, with its market share down from 11.5pc to 11pc.

Tesco and Morrisons are also being particularly hurt by the rise of the German hard discounters Aldi and Lidl, and have responded by cutting prices.

Sales at Aldi rose 32.2pc in the period taking its market share to 4.8pc, almost in line with more upmarket Waitrose. Lidl recorded sales growth of 19.5pc and saw its market share rise from 3.1pc to 3.6pc.

Wal-Mart's Asda and Sainsbury's both held onto their market share and recorded sales growth of 0.9pc and 1.2pc respectively.

Kantar said its measure of inflation fell to 0.4 pc- the lowest level in its dataset which began in October 2006.

Reuters

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