Tesco share price falls, sales slide as discounters march on ahead

Tesco shares were dealt a blow yesterday, after industry figures revealed another slowdown in sales at the troubled supermarket chain – despite its recent efforts to turn itself around.
Data from Kantar Worldpanel showed sales at Tesco fell by 1.3 per cent in the 12 weeks to 21 June, underperforming the overall grocery market, which slipped back into a decline of 0.1 per cent.
Tesco’s market share fell by three percentage points to 28.6 per cent compared with the same time last year. The retailer’s shares closed down 2.5 per cent on the news to 212.6p.
The figures were in line with the supermarket’s first quarter results released last week. While like-for-like sales fell by 1.3 per cent, this was its best performance in more than a year.
However, Tesco was not the worst performing supermarket in the UK. Asda’s sales fell 3.5 per cent, its market share sliding by six percentage points year-on-year to 16.5 per cent.
The decline means it now shares its title as Britain’s second biggest supermarket with Sainsbury’s, which saw its market share decline to 16.5 per cent, from 16.7 per cent last time.
Morrisons continued to shake off its prior woes, with growth of 0.6 per cent, taking its market share to 11 per cent. At the Co-operative, sales were flat, but ahead of the market for the first time in nearly four years.
However it was the challenger grocers Aldi and Lidl that continued their ascent up the sector, up 15.4 per cent and 9.1 per cent respectively. Sales at Waitrose climbed by 1.2 per cent, giving it a 5.1 per cent market share.
Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said: “Morrisons has seen the largest sales increase among the ‘big four’ retailers for the second month in a row... supported by an increase in online shopping.”
He added: “While only a small [market share] increase against a weak 2014, this does represent the first market share gains made by Morrisons since December 2011”.

Related articles