Tesco fightback steadies giant’s market share

Kasmira Jefford
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TESCO maintained its market share and matched market growth for the first time since June 2011, according to the latest grocery share data from Kantar Worldpanel.

The UK’s biggest supermarket grew sales year-on-year by 3.3 per cent in the 12 weeks to 20 January, giving it a market share of 30.4 per cent, as its turnaround plan helped to win back shoppers this Christmas.

“These positive results are a sign of stabilisation for Tesco as the retailer gets back on track with its customers,” Ed Garner, director at Kantar said.

However, the data confirmed that Tesco is putting pressure on rivals with Morrisons in particular suffering a 1.7 per cent drop in sales and a share decline of 0.6 percentage points in the period.

Sainbury’s sales rose 3.2 per cent year-on-year but its market share fell 0.1 percentage points to 16.9 per cent.

Meanwhile discounters continue to outperform the market, with Aldi and Lidl recording sales growth rates of 28.2 per cent and 10 per cent respectively.

Kantar highlighted that a widening gap between overall grocery market growth of 3.3 per cent and grocery inflation of 4.9 per cent is causing a squeeze on shopping budgets.

Upmarket grocer Waitrose posted the strongest growth after the discounters, with sales up eight per cent in the period.

The John Lewis owned group increased its market share by 0.2 percentage points to 4.6 per cent after enjoying a record Christmas trading period.

Co-op also made a surprise comeback in the period recording a 0.6 per cent sales rise compared with declines seen in 2012.