Tesco share price falls as data reveals shrinking market share

on Jun 3, 2014
Updated: Apr 9, 2020
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iNVEZZ.com, Tuesday, June 3: Shares in Britain’s largest supermarket operators have fallen today, after industry researcher Kantar Worldpanel released its latest grocery market share figures.

According to the data, of the UK’s ‘big four’ chains, only Wal-Mart-owned Asda increased its share of the market, with Tesco (LON:MRO) all losing ground.

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In the 12 weeks ended May 25, Tesco’s share of domestic market fell 1.5 percentage points to 29 percent, while its sales dropped 3.1 percent, increasing investors’ unease ahead of tomorrow’s first-quarter report from the UK market leader. Analysts have already voiced concerns regarding Tesco’s quarterly performance, predicting a four percent drop in underlying sales (Tesco share price: Retailer to report worst trading in years) ).

Tesco is losing ground to discounters Aldi and Lidl, whose combined share of the market is now 8.3 percent, up from 6.5 percent a year ago. At the upper end of the market, Waitrose has eaten into the ‘big four’s’ business, continuing its strong performance with a 6.1 percent increase in sales and a small rise in market share to 5.1 percent from 4.9 percent a year earlier.

Tesco’ biggest domestic rival, Asda, is also fighting back, today’s Kantar figures showed. The Wal-Mart-owned chain’s three-month sales rose 2.4 percent, lifting its share of the market to 17.1 percent from 17 percent a year earlier. J Sainsbury Plc recorded sales growth of 0.9 percent, but its market share fell to 16.5 percent from 16.7 percent.

Meanwhile, Morrisons, the smallest of the UK’s ‘big four’ grocers, continued to struggle, with sales dropping 3.9 percent and market share declining to 10.9 percent from 11.6 percent, according to Kantar. The figure came just weeks after Morrisons reported an 8.2 percent slump in first-quarter like-for-like sales (Morrisons share price dips as sales continue to fall).
Edward Garner, director at Kantar Worldpanel, said: “Tesco, Sainsbury’s and Morrisons have all lost market share since this period last year. Despite the wider market slowing, Lidl achieved a record share of 3.6 percent this period, accelerating with its highest ever year-on-year growth of 22.7 percent. Similarly, Aldi has gained 35.9 percent and retains its record 4.7 percent share reached last period.”

In the period covered by Kantar’s research, total sales in the grocery market rose just 1.7 percent, the slowest rate since 2003, while grocery inflation was 1.2 percent – the lowest rate in four years.
**Stock movement**
Today’s industry data has spurred a decline in the retail sector. By 12:50 BST, Tesco’s stock had fallen 1.33 percent to 296.55p. Among its FTSE 100-listed rivals, Sainsbury’s share price had eased 1.47 percent to 334.10p, while Morrisons’ share price had dipped 2.02 percent to 194.59p.
**As of 12:38 BST, buy Tesco shares at 296.65 p.**
**As of 12:38 BST, sell Tesco shares at 296.55p.**
**As of 12:39 BST, buy Sainsbury’s shares at 333.70p.**
**As of 12:39 BST, sell Sainsbury’s shares at 333.50p.**
**As of 12:40 BST, buy Morrisons shares at 194.80p.**
**As of 12:40 BST, sell Morrisons shares at 194.70p.**

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