Tesco share price heads south after latest Kantar numbers

Group’s market share falls in 12 weeks to October 7

Tesco share price heads south after latest Kantar numbers

Shares in Tesco (LON:TSCO) have fallen deep into the red in London this morning following the latest Kantar Worldpanel data which showed that supermarket spending had cooled off in the 12 weeks to October 7. The industry numbers follow the blue-chip grocer’s recent interim results.

As of 08:46 BST, Tesco’s share price had given up 2.96 percent to 209.60p, underperforming the broader UK market, with the benchmark FTSE 100 index having slipped marginally into negative territory and currently standing 0.26 percent lower at 7,011.25 points. The group’s shares have added just under 13 percent to their value over the past year, as compared with about a 6.7-percent dip in the Footsie.

Latest Kantar data

Kantar Worldpanel announced in a statement today that overall supermarket sales had grown 3.2 percent year-on-year in the 12 weeks to October 7, marking a slight slowdown from the highs reached during this year’s hot summer. At Tesco, sales were up 0.9 percent over the reported period, while its market share fell by 0.6 percentage points to 27.4 percent.

“Despite widespread interest in the September launch of its discounter concept, Jack’s, the small number of stores planned means it won’t impact on Tesco’s market share without a significant expansion,” Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, commented in the statement, adding that “within the main supermarket,  ‘Exclusively at Tesco’ lines continue to be a real bright spot, with 41 percent of British shoppers buying one of these products during the last 12 weeks, spending a combined £102 million.”

Analysts on Tesco

The 15 analysts offering 12-month price targets for Tesco for the Financial Times have a median target of 280.00p on the shares, with a high estimate of 300.00p and a low estimate of 200.00p. As of October 13, the consensus forecast amongst 22 polled investment analysts covering the blue-chip supermarket has it that the company will outperform the market.

As of 08:58 BST, Tuesday, 16 October, Tesco PLC share price is 210.30p.

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