As Tesco prepares to release its interim results on Thursday (23 October), new data from Kantar Worldpanel has revealed the retailer’s sales remain in decline.
Tesco’s sales were down 3.6% in the 12 weeks to 12 October, Kantar Worldpanel said today. Its market share also fell from 30.1% a year ago to 28.8%.
However, the sales decline has slowed somewhat compared to the last three months: it recorded a sales fall of 3.8% in Kantar’s July report, a 4% fall in August and a 4.5% drop in September.
“Tesco is yet to see substantial improvement, however it seems it may be turning a corner,” said Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel.
Sainsbury ’s also recorded a sharp fall in sales – down 3.1% – with market share falling from 16.7% a year ago to 16.1%. Morrisons sales fell by 1.8% and its market share from 11.2% to 11%. However, Asda saw its sales rise 1% and its market share creep up from 17.2% to 17.3%.
In sharp contrast, Waitrose secured a record market share of 5.2% and its sales rose by 6.8%. Aldi and Lidl both notched up double-digit increases in sales – of 27.3% and 18.1% respectively. Their market shares stand at 4.8% and 3.5%.
“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,” McKevitt added.
Kantar Worldpanel also revealed like-for-like prices had declined 0.2%, pushing the grocery market into deflation.
“While the supermarkets are battling it out on price, the real winners are consumers,” McKevitt added.
“Extensive price cutting by some supermarkets in a bid to win the price war means that consumers are saving on everyday items such as vegetables and milk .”
Meanwhile, The Co-op recorded a 0.4% sales decline over the three-month period, while its market share remained at 6.4%. Frozen discounters Iceland and Farmfoods also saw their sales fall – by 0.7% and 1.7% respectively.
| Total Till Roll - GB Consumer Spend | |||||
|---|---|---|---|---|---|
| 12 weeks to 13 October 2013 | 12 Weeks to 12 October 2014 | % Change | |||
| £000s | % ** | £000s | % ** | % | |
| Total Till Roll | 31,283,250 | 31,512,420 | 0.7% | ||
| Total Grocers | 24,189,280 | 100.0% | 24,295,130 | 100.0% | 0.4% |
| Total Multiples | 23,674,150 | 97.9% | 23,786,110 | 97.9% | 0.5% |
| Tesco | 7,268,887 | 30.1% | 7,006,161 | 28.8% | -3.6% |
| Asda | 4,162,887 | 17.2% | 4,202,605 | 17.3% | 1.0% |
| Sainsbury’s | 4,040,996 | 16.7% | 3,916,790 | 16.1% | -3.1% |
| Morrisons | 2,714,346 | 11.2% | 2,665,148 | 11.0% | -1.8% |
| The Co-operative | 1,557,052 | 6.4% | 1,551,226 | 6.4% | -0.4% |
| Waitrose | 1,174,986 | 4.9% | 1,254,591 | 5.2% | 6.8% |
| Aldi | 920,278 | 3.8% | 1,171,916 | 4.8% | 27.3% |
| Lidl | 720,986 | 3.0% | 851,383 | 3.5% | 18.1% |
| Iceland | 471,766 | 2.0% | 468,258 | 1.9% | -0.7% |
| Farmfoods | 171,204 | 0.7% | 168,222 | 0.7% | -1.7% |
| Other Multiples | 470,769 | 1.9% | 529,817 | 2.2% | 12.5% |
| Symbols & Independents | 515,130 | 2.1% | 509,015 | 2.1% | -1.2% |
** = Percentage Share of Total Grocers
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