TSCDY Tesco PLC (PK)

By Ian Walker

LONDON--J. Sainsbury PLC (SBRY.LN) was the only one of the top four grocers in the U.K. to increase sales in the latest 12 weeks, boosted by online sales and local convenience stores, according to the latest survey compiled by Kantar Worldpanel.

However, the pace of Tesco PLC's (TSCO.LN) declining sales halved to 0.8% from 1.6% in the 12 weeks ended Jan. 31. Its sales for the 12 weeks ended Feb. 28 were 7.53 billion pounds ($10.69 billion), while its market share slipped to 28.4%, from 28.7% in the comparable 12 week period, Kantar said. Kantar monitors the household grocery purchasing habits of 25,000 demographically representative households in the U.K.

Outside the top four, German discount retailers Aldi and Lidl also boosted both market share and sales, and are expected to take further market share this year as they fulfill their plans for more outlets.

Sainsbury market share in the 12 weeks ended Feb. 28 was unchanged at 16.8%, while sales grew 0.5% to GBP4.45 billion. "[Sainsbury's] sales grew for the eighth period in a row...this is the longest run of sales growth for any of the four main retailers since March 2013," Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel said.

He said that a renewed focus on price promotions has helped Tesco stem the flow of shoppers leaving, despite the closure of around 50 stores in the last year.

Aldi and Lidl's joint market share rose to 10%, up from 8.5% in the comparable 12 weeks ended March 1, 2015.

Separately, Aldi's market share has risen to 5.8% in the 12 weeks ended Feb. 28, from 5.0% for the comparable period in 2015. Lidl's market share has risen to 4.2% from 3.5% in the 12 weeks ended March 1, 2015.

Aldi's sales in the 12 weeks have grown 15% to GBP1.53 billion, while Lidl's shares have risen 19% to GBP1.1 billion.

Asda, a subsidiary of Wal-Mart Stores Inc. (WMT), saw its market share fall to 16.2%, from 17% for the comparable 12 weeks, with sales 4% lower at GBP4.3 billion.

Up-market retailer Waitrose's market share was unchanged at 5.2%, while sales climbed 0.2% to GBP1.39 billion.

Wm Morrison Supermarkets PLC's (MRW.LN) market share fell to 10.6% from 11%, while sales were 3.2% lower at GBP2.81 billion.

-Write to Ian Walker at ian.walker@wsj.com

(END) Dow Jones Newswires

March 08, 2016 03:53 ET (08:53 GMT)

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