LONDON--Tesco PLC (TSCO.LN) returned to growth for the first
time since January last year, but still continues to lose market
share to German discounters Aldi and Lidl, as well as up-market
retailer Waitrose, according to a survey Tuesday.
In the 12 weeks ended Feb. 1 Tesco increased sales 0.3% to 7.9
billion pounds ($ billion), but market share fell to 29%, from
29.2% for the comparable period in 2013, according to Kantar, which
monitors the household grocery purchasing habits of 25,000
demographically representative households in the U.K.
But Aldi, Lidl and Waitrose saw their combined sales rise 43% to
GBP3.71 billion, led by Aldi which increased sales an impressive
21.2%. Their combined market share has increased to 13.6%, from
12.1% in the 12 weeks ended Feb. 2, 2014.
"Britain's largest retailer is bouncing back from a tough year,
with Dave Lewis's (chief executive) efforts to overhaul the
supermarket attracting an additional 236,000 shoppers into its
stores in the last 12 weeks," Fraser McKevitt, head of retail and
consumer insight at Kantar Worldpanel said.
"Early results suggest that discounters Aldi and Lidl will find
their accelerated growth levels hard to match in 2015," Mr.
McKevitt said. Aldi's growth has slowed from its 36% peak in April
2014 while Lidl's growth peaked at 24% in May last year.
In the 12 weeks ended Feb. 1, Asda, a subsidiary of Wal-Mart
Stores Inc. (WMT), saw its market share slip to 16.9%, from 17.3%
for the 12 weeks ended Feb. 2, 2014, according to Kantar. J.
Sainsbury PLC (SBRY.LN) fell to 16.7%, from 17.1%, while Wm
Morrisons Supermarkets PLC (MRW.LN) market share fell to 11.1%,
from 11.3%.
-Write to Ian Walker at ian.walker@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires