Tesco’s share price (LON:TSCO) has fallen deep into the red in today’s session as the latest Kantar data pointed to flat sales at Britain’s biggest grocer for the 12 weeks ended June 16. The update follows the FTSE 100 supermarket’s recent quarterly results, with Tesco posting what it referred to as ‘outperformance in a subdued market’.
As of 09:21 BST, Tesco’s share price had given up 2.20 percent to 226.20p, underperforming the broader London market, with the benchmark FTSE 100 index currently standing 0.22 percent lower at 7,400.03 points. The group’s shares have given up about 13 percent of their value over the past year, as compared with about a 1.5-percent fall in the Footsie.
Latest Kantar data
Kantar Worldpanel announced in a statement today that UK supermarket sales had grown 1.4 percent year-on-year in the 12 weeks to June 16.
“The modest level of current growth is thanks in no small part to the wet start to the summer, with last year’s heatwave and the run up to the men’s FIFA World Cup making 2018 a difficult year to top,” Fraser McKevitt, head of retail and consumer insight at Kantar, commented in the statement.
At Tesco, sales came in flat year-on-year, despite an increase in volumes. This was caused by the average price paid per pack falling with sales of the grocer’s value own label lines increasing by 11 percent, and its ‘100 Years of Great Value’ campaign continuing to offer lower prices. Kantar said that Tesco had remained the country’s largest retailer, even as its market share fell by 0.4 percentage points to 27.3 percent during the reported period.
Analysts on Tesco
The 13 analysts offering 12-month targets for the Tesco share price for the Financial Times have a median target of 276.00p, with a high estimate of 315.00p and a low estimate of 220.00p. As of June 21, the consensus forecast amongst 22 polled investment analysts covering the blue-chip grocer has it that the company will outperform the market.