Asda boss Tony DeNunzio has rejected claims that non-food sales alone have swept it past Sainsbury to take the number two slot in UK grocery.
Speaking as TNS till roll data revealed Asda had boosted its market share to 17% against Sainsbury’s 16.2% in the four weeks to July 20, DeNunzio said: “We’re delighted to become number two.”
He added: “This is a real tribute to 120,000 dedicated colleagues and the 13 million shoppers that visit our stores every week. But growth is not just coming from non-food. Food is growing at more than 9%.”
TNS data showed Asda’s food share in the four weeks to July 20 was 13.3%, up from 12.8% in the same period last year, whereas Sainsbury’s share had slipped from 15.9% to 15.3%.
However, the hype over Asda’s rise overshadowed the biggest story, that Tesco was now so far ahead of the competition it controlled almost a third of the market, said Schroder Salomon Smith Barney analyst Dave McCarthy. “In cash sales, Tesco is outstripping the competition by a considerable margin.”
In the four weeks to July 20, Tesco’s market share shot up from 26.3% to 27.2% - a record high. On a 12-week basis to July 20, it took a 27.1% share.
While Sainsbury’s slide in the rankings came as no great surprise, analysts said it was a psychological blow for the company, which had the most to lose if Safeway fell into the hands of a rival. However, news the OFT was referring its interest in 171 Somerfield’s stores to the Competition Commission was probably a bigger blow.
Sainsbury admitted it was “disappointed” with the referral, but downplayed the significance of the TNS data.
Head of media Pip Wood said: “Obviously, we would rather be number two instead of number three, but Asda has overtaken us because they have the strengths in areas [non-food, general merchandise] where we do not yet have a big presence.”
Sainsbury will roll out new non-food ranges in late autumn, with housewares, tablewares, linen and hardware going into 80 stores before Christmas, and clothing to follow. “By the end of March, the new ranges will be represented in 200 stores,” said Wood. But she stressed the chain was not pinning its hopes on non-food alone.
>>p33 Double blow for JS
Elaine Watson
Speaking as TNS till roll data revealed Asda had boosted its market share to 17% against Sainsbury’s 16.2% in the four weeks to July 20, DeNunzio said: “We’re delighted to become number two.”
He added: “This is a real tribute to 120,000 dedicated colleagues and the 13 million shoppers that visit our stores every week. But growth is not just coming from non-food. Food is growing at more than 9%.”
TNS data showed Asda’s food share in the four weeks to July 20 was 13.3%, up from 12.8% in the same period last year, whereas Sainsbury’s share had slipped from 15.9% to 15.3%.
However, the hype over Asda’s rise overshadowed the biggest story, that Tesco was now so far ahead of the competition it controlled almost a third of the market, said Schroder Salomon Smith Barney analyst Dave McCarthy. “In cash sales, Tesco is outstripping the competition by a considerable margin.”
In the four weeks to July 20, Tesco’s market share shot up from 26.3% to 27.2% - a record high. On a 12-week basis to July 20, it took a 27.1% share.
While Sainsbury’s slide in the rankings came as no great surprise, analysts said it was a psychological blow for the company, which had the most to lose if Safeway fell into the hands of a rival. However, news the OFT was referring its interest in 171 Somerfield’s stores to the Competition Commission was probably a bigger blow.
Sainsbury admitted it was “disappointed” with the referral, but downplayed the significance of the TNS data.
Head of media Pip Wood said: “Obviously, we would rather be number two instead of number three, but Asda has overtaken us because they have the strengths in areas [non-food, general merchandise] where we do not yet have a big presence.”
Sainsbury will roll out new non-food ranges in late autumn, with housewares, tablewares, linen and hardware going into 80 stores before Christmas, and clothing to follow. “By the end of March, the new ranges will be represented in 200 stores,” said Wood. But she stressed the chain was not pinning its hopes on non-food alone.
>>p33 Double blow for JS
Elaine Watson
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