TSCDY Tesco PLC (PK)

By Ian Walker

LONDON--Sales at Tesco PLC (TSCO.LN) are starting to stabilize, despite the U.K's biggest grocer losing market share to German discount retailers Aldi and Lidl, as well as upmarket retailer Waitrose, according to a market survey Wednesday.

Sales at Tesco are down 1% to 7.21 billion pounds ($10.43 billion) in the 12 weeks ended May 22, Kantar said, while its market share has slipped to 28.3%, from 28.6%. Kantar monitors the household grocery purchasing habits of 25,000 demographically representative households in the U.K.

Aldi and Lidl's joint market share rose to 10.4%, up from 9.3% in the comparable 12 weeks ended May 24, 2015. Separately Aldi's market share has risen to 6% in the 12 weeks ended May 22, from 5.4% for the comparable period in 2015. Lidl's market share has risen to 4.4%, from 3.9% a year earlier.

Aldi's sales in the 12 weeks have grown 11% to GBP1.54 billion, while Lidl's sales have risen 14% to GBP1.21 billion.

Waitrose' market share rose to 5.3%, from 5.2% in the 12 months ended May 24, 2015, while sales climbed 2.1% at GBP1.34 billion.

Sales at Sainsbury PLC (SBRY.LN) fell 1.2% to GBP4.14 billion, while the retailer's market share in the 12 weeks ended May 22 fell to 16.2%, from 16.5%.

Asda, a subsidiary of Wal-Mart Stores Inc. (WMT), saw its market share fall to 15.8%, from 16.6% for the comparable 12 weeks, with sales 5.1% lower at GBP4.02 billion.

Sales at Wm Morrison Supermarkets PLC (MRW.LN) were 2.1% lower in the period at GBP2.72 billion, while the company's market share fell to 10.7%, from 10.9%.

"While the big four are struggling to keep their market share what's clear is that consumers aren't flocking away from their stores--their combined shopper numbers have dropped only 0.2% in the latest 12 weeks," Kantar Worldpanel Director Edward Garner said.

"In fact, 94% of Aldi and Lidl shoppers still visit at least one of the four major retailers every four weeks," Mr. Garner added.

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

(END) Dow Jones Newswires

June 01, 2016 03:47 ET (07:47 GMT)

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