TSCO Tesco Plc

By Ian Walker

LONDON--The rate of Tesco PLC's (TSCO.LN) market share decline is slowing as the number one grocer improves performance from its larger stores, according to a market survey Tuesday.

Tesco's market share for the 12 weeks ended July 17 stood at 28.3%, compared with 28.5% for the comparable 12 weeks ended July 19, 2015, its slowest rate of share loss since March 2015, Kantar Worldpanel said. Kantar monitors the household grocery purchasing habits of 25,000 demographically representative households in the U.K.

Tesco's sales over the period are down 0.7% to 7.16 billion pounds ($9.41 billion).

So far, there has been no impact to prices, or shopping volumes, from the U.K referendum to exit the European Union last month, Kantar says.

"The nation's average shopping basket is 1.4% cheaper than a year ago, exactly the same level of deflation as reported last month, and it remains to be seen if the Brexit vote will bring about any price rises this year," Fraser McKevitt, head of retail and consumer insight at Kantar said.

Aldi and Lidl's joint market share rose to 10.7%, up from 9.6% in the comparable 12 weeks ended July 19, 2015. Separately Aldi's market share has risen to 6.2% in the 12 weeks ended July 17, from 5.6% for the comparable period in 2015. Lidl's market share has risen to 4.5%, from 4% in the 12 weeks ended July 19, 2015.

Aldi's sales in the 12 weeks have grown 11% to GBP1.56 billion, while Lidl's shares have risen 13% to GBP1.13 billion.

Upmarket retailer Waitrose's market share rose to 5.1%, from 5% in the 12 months ended July 19, 2015, and sales climbed 1.6% at GBP1.29 billion.

Sainsbury PLC (SBRY.LN)'s market share in the 12 weeks ended July 17 has fallen to 16.3%, from 16.5%, while sales fell 1.1% to GBP4.12 billion.

Asda, a subsidiary of Wal-Mart Stores Inc. (WMT), saw its market share fall to 15.5%, from 16.4% for the comparable 12 weeks, with sales 5.6% lower at GBP3.92 billion.

Wm Morrison Supermarkets PLC (MRW.LN)'s market share fell to 10.7%, from 10.9%, while sales were 1.8% lower at GBP2.91 billion.

"Over the latest 12 weeks beer sales did bring about some cheer for the grocers, growing 2.8%, ahead of the overall market," Mr. McKevitt said. "The impact was mostly felt prior to England's early exit from the Euro 2016 football tournament, which brought with it a rapid reversal in fortune for beer sales."

"Beer and lager were also hindered by poor early summer weather, as were barbecue favorites like sausages, which fell by 6.3%," he added.

Write to Ian Walker at ian.walker@wsj.com

(END) Dow Jones Newswires

July 26, 2016 03:58 ET (07:58 GMT)

Tesco (LSE:TSCO)
Historical Stock Chart
From Mar 2024 to Apr 2024

Tesco (LSE:TSCO)
Historical Stock Chart
From Apr 2023 to Apr 2024