Tesco’s (LON:TSCO) share price has fallen deep into the red this Tuesday as the latest Kantar data pointed to a fall in the grocer’s market share in the 12 weeks to July 14. The figures further revealed a decline in overall supermarket sales in the UK during the reported period.
As of 14:36 BST, Tesco’s share price had given up 2.25 percent to 229.90p. The shares are significantly underperforming the benchmark FTSE 100 index which is 0.87 percent better off at 7,580.54 points, with the pound slipping as Boris Johnson won the race for the leadership of the Conservative Party and succeeded Theresa May as Britain’s prime minister.
Latest Kantar data
Kantar Worldpanel announced in a statement today that year-on-year supermarket sales had fallen by 0.5 percent in the 12 weeks to July 14 in the UK, marking the first overall decline in supermarket sector since June 2016.
“It was a challenging 12 weeks for all the major grocers, with growth slowing at every supermarket except Ocado,” Fraser McKevitt, head of retail and consumer insight at Kantar, commented in the statement.
Tesco’s market share meanwhile dipped 0.4 percentage points to 27.2 during the reported period. McKevitt, however, noted that the blue-chip grocer found “success through its value own-label ranges, including both its ‘Farm Brands’ and ‘Exclusively at Tesco’ lines, which increased by 11 percent”.
Analysts on Tesco
The 15 analysts offering 12-month targets for the Tesco share price for the Financial Times have a median target of 280.00p, with a high estimate of 315.00p and a low estimate of 220.00p. As of July 19, the consensus forecast amongst 23 polled investment analysts covering the blue-chip supermarket that the company will outperform the market.
Britain’s biggest grocer recently warned that planning for the new Brexit deadline at the end of October is ‘more difficult’ because the supply network will be full of Christmas stock.