10th Mar 2015 09:51
LONDON (Alliance News) - Tesco has put in its best UK sales performance for 18 months in recent weeks, while discount retailer Aldi has achieved a new record market share, but the sector as a whole is continuing to be hit by price deflation, according the latest industry data from Kantar Worldpanel.
Tesco's till-roll in the 12 weeks to March 1 was up 1.1% on a year earlier at GBP7.6 million, its best performance for 18 months, according to Kantar. That meant the drop in its market share slowed, with its share standing at 28.7%, down from 28.8% in the 12 weeks to March 2, 2014.
All the UK's four biggest supermarkets have been under pressure as customers have changed their shopping habits. Discounters Aldi and Lidl as well as upmarket grocer Waitrose, part of John Lewis Partnership, have been growing at the expense of the big four.
Aldi's market share grew to a new record of 5.0% in the latest 12 week period, up from 4.3% a year earlier, while Lidl's market share was 3.5%, up from 3.1%. Waitrose's market share was 5.2% up from 5.0%.
Asda has been the most resilient to the advance of the discounters up to now, but Kantar said the British unit of US grocery giant Wal-Mart Stores Inc was the worst hit in the latest 12 week period. Its market share stood at 17.0% in the 12 weeks to March 1, down from 17.5% a year earlier.
J Sainsbury PLC's market share was 16.8% in the latest period, down from 17.0% a year earlier, while Wm Morrison Supermarkets PLC saw its share decline to 11.0% from 11.1%.
The big four's response to the rise of the discounters has been to announce massive investments in pricing, leading to a price war in the sector. Kantar said that deflation in the sector has reached a new low in the latest 12 weeks, with prices down 1.6%. Kantar has been measuring grocery price inflation since October 2006.
"All of the major supermarkets are cutting prices to win shoppers, especially within everyday staples such as eggs, vegetables and milk. Retailers are focusing their efforts on simple price cuts rather than complicated ?multibuy? deals," said Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel.
Tesco shares were up 0.8% at 242.20 pence Tuesday morning, while Sainsbury's was down 2.0% at 269.95 pence and Morrisons was down 0.4% at 207.30 pence.
By Steve McGrath; [email protected]; @stevemcgrath1
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