18th Oct 2016 07:15
LONDON (Alliance News) - Tesco PLC has consolidated its position as the UK's largest supermarket as it proved the only one of the big four grocers to report a rise in sales in the 12 weeks to October 9, Kantar Worldpanel figures showed on Tuesday.
Tesco sales were up 1.3% year-on-year in the period, with its market share rising to 28.2% from 28.1% in the comparable period a year earlier. That is the first market share gain Tesco has registered in the Kantar report since 2011.
This compares to sales for J Sainsbury PLC, the second-largest by market share in the UK, falling 0.4%. Its market share declined to 16.0% from 16.1%.
Asda Stores Ltd, owned by US giant Wal-Mart Stores Inc, and Wm Morrison Supermarkets PLC were the worst performers. Asda sales, having been on a sharp downslide in recent months, were off 5.2% year-on-year and its market share fell to 15.6% from 16.6% a year before. Morrisons sales were down 3.0% and its market share was down to 10.4% from 10.8% a year earlier.
As has been the norm in recent years, insurgent German discounters Aldi and Lidl were the best performers. Aldi sales were up 11% year-on-year in the period, while Lidl sales increased 8.4%. The pair now have a combined 10.6% share of the UK grocery market, compared to 9.9% a year before.
Sales for upmarket grocer Waitrose, part of the John Lewis Partnership, were up 3.5%, with its market share rising to 5.4% from 5.2%. Sales for the Co-op were up 3.1%, giving it a 6.5% market share against 6.4% a year before.
Total UK grocery sales were up 0.8% year-on-year and price deflation was at 0.8% year-on-year, the 27th consecutive period of grocery price deflation, Kantar said.
"Foods including ready meals and produce have been among the fastest growing areas at Tesco, helped by its 'Farm Brands' but also its standard own label lines," said Fraser McKevitt, head of retail and consumer insight at Kantar.
"Sales growth has been strongest among family shoppers, while improved trading from its larger supermarket and Extra stores has supported this month?s gains," McKevitt added on Tesco.
Tesco shares were up 2.0% to 205.25 pence early Tuesday. Sainsbury's shares were up 0.3% to 229.90p and Morrisons shares were down 0.4% to 220.50p.
By Sam Unsted; [email protected]; @SamUAtAlliance
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