A fall in sales at supermarket giant Tesco has seen the company's market share fall below 30% for the first time in almost seven years, according to data unveiled on Tuesday.
Market research conducted by Kantar WorldPanel revealed that sales at Tesco have dropped as competitors such as Asda and Sainsbury's boosted their own market share.
Tesco saw its market share fall from 30.5% to 29.9% year-on-year, the lowest percentage seen since May 2005.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
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
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Tesco, which issued a profit warning in early January as a result of poor Christmas sales, blamed the problems on an ill-advised pricing strategy.
Morrison's share also took a dive, down sharply from 5.1% to 3.7%, while Asda, Sainsbury and Iceland all soared in the opposite direction.
Wal-Mart-owned Asda increased its market share to a high of 17.5%, Sainsbury's to 16.7% - its highest level since 2003 - and Iceland to 2.1%, its highest level in 10 years.
The figures suggest a move by UK citizens to reduce the amount they spend on items by purchasing cheaper options and fewer items.
Tesco's share price rose 0.03% to 320.1p by 13:21.
NR
-
Christmas at Chatsworth: review of The Cavendish Hotel at BaslowMoneyWeek Travel Matthew Partridge gets into the festive spirit at The Cavendish Hotel at Baslow and the Christmas market at Chatsworth
-
Tycoon Truong My Lan on death row over world’s biggest bank fraudProperty tycoon Truong My Lan has been found guilty of a corruption scandal that dwarfs Malaysia’s 1MDB fraud and Sam Bankman-Fried’s crypto scam
