Tesco share price slides even as grocery sales rise

on Mar 7, 2017
Updated: Oct 21, 2019

Shares in Tesco (LON:TSCO) have retreated into negative territory this morning, underperforming the broader London market, as the latest Kantar data showed that Britain’s biggest supermarket had lost market share in the 12 weeks to February 26. The grocer, however, saw its sales rise for a sixth period in a row.

As of 09:03 GMT, Tesco’s share price had shed 1.42 percent to 187.60p, underperforming the benchmark FTSE 100 index which has climbed into positive territory and is currently 0.16 percent better off at 7,362.18 points. The group’s shares have lost just under two percent of their value over the past year, and are down by nearly 10 percent in the year-to-date.
Kantar Worldpanel announced this morning that overall supermarket sales had grown at their fastest rate since June 2014 in the 12 weeks ending February 26, climbing by 2.3 percent as compared with the prior-year period. At Tesco, sales increased by 0.6 percent, marking the sixth period in a row where the supermarket has seen growth, or the group’s best run since January 2014.

This, however, was not enough to stop the grocer’s market share from slipping by 0.5 percentage points to 27.9 percent during the reported period.
Kantar further noted that combined sales the UK’s four largest supermarkets had increased by 0.5 percent.
“This is a timely reminder that despite the huge interest in the discounters during recent years the big four remain a force to be reckoned with,” Fraser McKevitt, head of retail and consumer insight at Kantar, pointed out.
The 17 analysts offering 12-month price targets for Tesco for the Financial Times have a median target of 200.00p, with a high estimate of 260.00p and a low estimate of 150.00p. As of March 6, the consensus forecast amongst 22 polled investment analysts covering the blue-chip supermarket advises investors to hold their position in the company.
As of 09:32 GMT, Tuesday, 07 March, Tesco PLC share price is 187.23p.

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