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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%. Almost half of British grocery shoppers now visit Aldi or Lidl every month, according to separate research from Nielsen. | |
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%. |
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