Tesco’s (LON:TSCO) share price has slipped marginally lower in London this morning, as Kantar Worldpanel disclosed that sales at Britain’s biggest grocer had fallen in the past 12 weeks. The news marks another blow for the FTSE 100 company after it emerged that Tesco’s discount chain Jack’s had seen slow growth in the first year following its launch.
As of 09:44 BST, Tesco’s share price had given up 0.38 percent to 236.60p. The shares are underperforming the broader UK market, with the benchmark FTSE 100 index having climbed into positive territory and currently standing 0.15 percent higher at 7,332.61 points.
Latest Kantar numbers
Kantar Worldpanel announced in a statement this morning that overall UK grocery sales had grown 0.5 percent by volume in the past 12 weeks. There was, however, no evidence of stockpiling ahead of the current Brexit deadline of October 31, with households having bought 0.9 percent fewer items.
At Tesco sales meanwhile fell 1.4 percent during the reported period, while German discounters Aldi and Lidl continued to grow sales. Lidl further reached a new record high market share, crossing the six-percent line for the first time.
Fraser McKevitt, head of retail and consumer insight at Kantar, commented in the statement that there were nevertheless “bright spots for Tesco including sales of free-from products, which were up 11 percent, and its own value lines like Redmere Farms and Creamfields as sales of these ranges totalled over a third of a billion pounds”.
Analyst ratings update
Sanford C. Bernstein reaffirmed the blue-chip grocer as an ‘outperform,’ without specifying a target on the Tesco share price, while earlier this month, Barclays reiterated its ‘overweight’ rating on the supermarket. According to MarketBeat, Britain’s biggest grocer currently has a consensus ‘buy’ rating and an average valuation of 278p.
The FTSE 100 group is scheduled to update investors on its interim results on October 2.