Tesco, the UK’s leading supermarket chain, has been knocked off top spot as Britain’s fastest growing grocery retailer by rivals J. Sainsbury and Asda .
The company showed slower growth than its smaller rivals in the first three months of this year, though it still leads the way in the popularity stakes, figures released last night showed.
Asda saw its sales increase by 9 per cent during the 12 weeks to 25 March, compared with the same period last year. Sainsbury posted annual growth of 8 per cent, which was enough to come second beating Tesco’s 7 per cent, according to data from market research company, TNS .
Asda Chief Executive Andy Bond, who is in charge of the recovery at the supermarket chain, said Asda’s performance was proof that his turnaround strategy is working, and for the first time in three years the chain was outperforming the rest of the retail sector.
“These figures just go to show that when it comes to customers through the door, value continues to be king. We have rekindled our customers’ love affair with Asda,” he said.
Sainsbury’s, Britain’s number three-supermarket chain and the subject of takeover interest, saw an increase in its market share by 8 percent to 16.4 per cent, but it wasn’t enough to equal Asda’s 16.9 per cent, and is still some way behind Tesco’s 31.2 per cent.
Andrew Wade, analyst at Seymour Pierce, said the latest figures highlighted a trend of slowing growth at Tesco’s grocery sales this year.
But the data does not include non-food sales, a sector that Tesco still dominates the market in and is expected to show strong growth in the area.
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