Tesco (LON:TSCO) lost its top spot in Ireland in the 12 weeks ended October 7, the latest grocery market share figures from Kantar Worldpanel have shown. The news comes after it recently emerged that UK sales at Britain’s biggest supermarket grew 0.9 percent over the same period, while its market share slipped by 0.6 percentage points to 27.4 percent.
Tesco’s share price fell in the previous session, giving up 0.75 percent to close at 213.00p, underperforming the broader UK market, with the benchmark FTSE 100 index ending trading 0.10 percent lower at 7,042.80 points. The group’s shares have added more than 12 percent to their value over the past year, as compared with about a 6.4-percent dip in the Footsie.
Tesco loses top spot in Ireland
Kantar Worldpanel Ireland said in a statement yesterday that following six consecutive periods at the top, Tesco was the second-largest supermarket in the country in the 12 weeks to October 7, losing the top spot to Dunnes Stores. Kantar noted that the FTSE 100 group accounted for 21.5 percent of total grocery sales during the reported period and with online grocery sales up 15 percent compared to this time last year, it would be hoping that its latest e-commerce initiative further increased its dominance of online grocery in Ireland.
“Tesco’s recent announcement of free delivery for over 65s when they spend €50 or more shows it is looking to further cash in on the growth of online shopping in Ireland,” Douglas Faughnan, consumer insight director at Kantar Worldpanel, commented in the statement.
Analysts on blue-chip grocer
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 20, the consensus forecast amongst 22 polled investment analysts covering the blue-chip group has it that the company will outperform the market.