Tesco's market share continues to slip against stiff competition

Tesco's presence in the grocery market has fallen to levels last seen seven years ago, as rival chains ramped up the competition, according to the latest industry figures from Kantar Worldpanel.

In the 12 weeks to February 19th, Kantar Worldpanel said that while Tesco still retained the biggest market share in the grocery industry, at 29.7%, this was down from the 30.3% share achieved in the same period last year, continuing its recent downward trend.

Nevertheless, the grocery market on the whole expanded by 4.5% in the period, more or less in line with the industry's performance over the past six months.

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Edward Garner, director at Kantar Worldpanel, explains: "While the growth rate remains lower than grocery price inflation, currently at 5.5%, the gap between the two measures is narrowing - meaning pressure on household budgets, while still strong, is not getting any worse."

ASDA, owned by US retail giant Wal-Mart managed to maintain its record market share of 17.5% during the period, helped by the completion of its Netto conversions.

Upmarket grocer Waitrose saw its market share rise to 4.5%, an all-time record for the retailer. "Its continuing strong performance shows that it is a mistake to talk about the 'average' UK shopper. Some consumers clearly value good service and instore experience when shopping, which Waitrose claims to provide. The retailer has also benefited from increasing numbers of shoppers, as its store expansion makes its shops accessible to more people," Garner said.

Sainsbury's lifted its market share from 16.5% to 16.6%, however, Morrisons saw its share slip from 12.3% to 12.2%.

Budget retailers Aldi, Lidl and Iceland maintained their record market shares, with Kantar Worldpanel saying that the 'Two Nations' phenomenon has continued "as value for money remains paramount for many shoppers."

BC