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Tesco, Asda and Morrisons suffer sales slump despite drive to cut prices Tesco, Asda and Morrisons suffer sales slump despite price cuts
(about 3 hours later)
Tesco, Asda and Morrisons were the worst performing food retailers in Britain in the last three months – despite committing hundreds of millions of pounds to price cuts.Tesco, Asda and Morrisons were the worst performing food retailers in Britain in the last three months – despite committing hundreds of millions of pounds to price cuts.
Tesco sales fell by 1% year-on-year in the 12 weeks to 13 September, while Morrisons dropped 1.4% and Asda slumped by 2.9%. Sainsbury’s was the only one of the so-called big four supermarkets to increase sales during the period, according to the latest market share figures from Kantar.Tesco sales fell by 1% year-on-year in the 12 weeks to 13 September, while Morrisons dropped 1.4% and Asda slumped by 2.9%. Sainsbury’s was the only one of the so-called big four supermarkets to increase sales during the period, according to the latest market share figures from Kantar.
The big four are under pressure following a shift in shopping habits as consumers spend more in small convenience stores, online, and with the discounters Aldi and Lidl. The Co-operative and Iceland, which have struggled in recent months, also showed a lift in sales.The big four are under pressure following a shift in shopping habits as consumers spend more in small convenience stores, online, and with the discounters Aldi and Lidl. The Co-operative and Iceland, which have struggled in recent months, also showed a lift in sales.
In contrast to the struggles of the established grocers, Aldi increased sales by 17.3% and Lidl grew 16%. Waitrose, the upmarket grocer, had a 2.9% rise in sales. In contrast to the struggles of the established grocers, Aldi increased sales by 17.3% and Lidl grew 16%. Almost half of British grocery shoppers now visit Aldi or Lidl every month, according to separate research from Nielsen.
Related: Will Lidl’s living wage smash the UK’s low-pay cartel? | Aditya Chakrabortty Mike Watkins, analyst at Nielsen, said: “These discounters are attracting new shoppers by opening new stores and using ads that communicate not just value, but quality and freshness too.”
Overall sales for the grocery industry rose by 0.9% during the 12 weeks, the sixth consecutive month that sales have grown by less than 1%, with the supermarket price war reducing the value of sales.Overall sales for the grocery industry rose by 0.9% during the 12 weeks, the sixth consecutive month that sales have grown by less than 1%, with the supermarket price war reducing the value of sales.
Related: Will Lidl’s living wage smash the UK’s low-pay cartel? | Aditya Chakrabortty
Tesco’s market share now stands at 28.2%, its lowest level for a decade. This week marks the first anniversary of the discovery of the accounting scandal that rocked Britain’s biggest retailer. Despite Dave Lewis, its chief executive, unveiling a detailed turnaround plan, Tesco continues to underperform in the wider market.Tesco’s market share now stands at 28.2%, its lowest level for a decade. This week marks the first anniversary of the discovery of the accounting scandal that rocked Britain’s biggest retailer. Despite Dave Lewis, its chief executive, unveiling a detailed turnaround plan, Tesco continues to underperform in the wider market.
Analysts claim that staff morale has been damaged by job cuts and the closing of the company’s final salary pension scheme. Sainsbury’s grew sales by 0.9% during the period, taking its market share to 16.2%.Analysts claim that staff morale has been damaged by job cuts and the closing of the company’s final salary pension scheme. Sainsbury’s grew sales by 0.9% during the period, taking its market share to 16.2%.
Fraser McKevitt, the head of retail and consumer insight at Kantar, said: “Sainsbury’s has grown sales by 0.9% compared with a year ago, attracting 250,000 new shoppers through the door in the last 12 weeks. The retailer has held its share steady at 16.2%, helped by the continued expansion of its Sainsbury’s Local outlets.”Fraser McKevitt, the head of retail and consumer insight at Kantar, said: “Sainsbury’s has grown sales by 0.9% compared with a year ago, attracting 250,000 new shoppers through the door in the last 12 weeks. The retailer has held its share steady at 16.2%, helped by the continued expansion of its Sainsbury’s Local outlets.”
Asda remains Britain’s second-biggest retailer with a 16.7% share of the market, while Morrisons accounts for 10.7%. The growth of the discount retailers means Aldi increased its market share from 4.8% a year ago to 5.6%, while Lidl expanded from 3.6% to 4.2%.Asda remains Britain’s second-biggest retailer with a 16.7% share of the market, while Morrisons accounts for 10.7%. The growth of the discount retailers means Aldi increased its market share from 4.8% a year ago to 5.6%, while Lidl expanded from 3.6% to 4.2%.
Waitrose, the upmarket grocer, had a 2.9% rise in sales. Its market share rose from 5.1% to 5.2%.