21/10/2014

Tesco Losing Out To Competitors

Sales at supermarket chain Tesco are said to be falling faster than any of its competitors.

The findings, which have been complied by research firm Kantar Worldpanel, found that the troubled business is also losing its market share to discounted chains such as Aldi and Lidl. Waitrose is also usurping some of the market share.

In the 12 weeks to 12 October 2014, Tesco saw its sales fall 3.6%, reducing its market share to 28.8%. A year ago, its market share was 30.1%.

Despite the fall, Kantar reported that the same period was also the supermarket's best performance since June 2014.

Elsewhere, the statistics revealed Waitrose increased its sales by 6.8%, while Aldi and Lidl increased their market share too, with sales rising by 27.3% and 18.1% respectively.

Among the larger supermarket chains, Asda was the only one to report a rise in sales of 1%, with Sainsbury's sales falling 3.1% and Morrisons down by 1.8%.

Fraser McKevitt, Kantar's head of retail and consumer insight, is quoted as saying: "We are seeing clear polarisation of the market, with both the premium and discount ends of the market gaining share, while the mainstream grocers continue to be squeezed in the middle."

(JP)

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