Asda growing market share as Tesco falters

Asda is the rising force in the British supermarket war, according to research firm Kantar Worldpanel.

Figures covering the first 12 weeks of the year show the Walmart subsidiary now has 17.9% of the UK market, after posting a year-on-year growth rate of 7.8%.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

The news is less good for Tesco which achieved year-on-year growth of 2.7%, reducing market share from 30.5% to 30.4%. Kantar's director, Edward Garner, said Tesco "still lags behind the market" but added the numbers were "an improvement on the growth rates seen so far this year".

The rise and, perhaps temporary, fall of Tesco has been heavily commented on after it issued its first profit warning in 20 years in January. Since then the head of the UK business, Richard Brasher, has left the firm and the market awaits a strategy update in April.

Kantar says Sainsbury's and Morrisons' market share remains stable, while Waitrose, Aldi and Lidl are outperforming the market.

Total sales across the sector are growing at 4% on an annualised basis.

At 08:30 Tesco shares were flat at 337.95p, since the start of 2012 the stock has dropped 16%. J Sainsbury shares were also unchanged at 315.8p, Wm. Morrison shares were stable at 304.2p.

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.