Tesco U.K Market Share Loss Continues; Seen Returning to Growth this Year
23 August 2016 - 10:00AM
Dow Jones News
By Ian Walker
LONDON--German discount grocers Aldi and Lidl continue to take
sales and market share away from the big four in the U.K., though
Tesco PLC's (TSCO.LN) market-share fall is the slowest in six
months, suggesting it may return to growth this year, according to
a market survey Tuesday.
Aldi and Lidl's joint market share rose to 10.7% in the 12 weeks
ended Aug. 14, up from 9.7% in the comparable 12 weeks ended Aug.
16, 2015. Aldi's market share has risen to 6.2% in the 12 weeks,
from 5.6% for the comparable period in 2015. Lidl's market share
has risen to 4.5%, from 4.1%.
Aldi's sales in the 12 weeks have grown 10.4% to 1.55 billion
pounds ($2.04 billion), while Lidl's have risen 12.2% to GBP1.14
billion.
Tesco's market share for the 12 weeks ended Aug. 14 stood at
28.1%, compared with 28.3% for the comparable 12 weeks, Kantar
Worldpanel said. Kantar monitors the household grocery purchasing
habits of 25,000 demographically representative households in the
U.K.
Tesco's sales over the period are down 0.4% to GBP7.03
billion.
Fraser McKevitt, head of retail and consumer insight at Kantar
Worldpanel, said: "Current trends suggest the retailer may return
to growth this year, which would mark the end of a decline
stretching back to March 2015. Tesco's recent product launches have
been making a positive impact on its performance, with its 'farm
brands' finding their way into over a quarter of the Tesco baskets
this period."
Sainsbury PLC (SBRY.LN)'s market share in the 12 weeks ended
Aug. 14 declined to 16.1%, from 16.3%, while sales fell 0.6% to
GBP4.04 billion.
Asda, a subsidiary of Wal-Mart Stores Inc. (WMT), saw its market
share fall to 15.7%, from 16.6% for the comparable 12 weeks, with
sales 5.5% lower at GBP3.92 billion.
Wm Morrison Supermarkets PLC (MRW.LN)'s market share fell to
10.6%, from 10.8%, while sales dropped 1.8% to GBP2.64 billion
Up-market retailer Waitrose's market share was unchanged at
5.1%, and sales climbed 1.4% to GBP1.28 billion.
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
August 23, 2016 03:45 ET (07:45 GMT)
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