Tesco Losing Out To Discount Supermarkets

Discount retailer Aldi has boosted its share of the UK grocery market to 3 per cent – the highest ever level recorded by market analysts TNS Worldpanel.
According to new data from the group, sales at Aldi rocketed by 22.1 per cent in the 12 weeks to October 5 as cash-strapped consumers continue to flock to lower-cost retailers.
Fellow German discount retailer Lidl also had a good quarter, with sales up 9.85 per cent, while frozen food specialist Iceland saw sales advance 11.8 per cent.
However, both Tesco and Sainsburys have seen their market shares fall by 0.4 per cent to 31.4 per cent and 0.1 per cent to 15.7 per cent respectively.
Tesco saw sales growth slow to 5.5 per cent during a period which saw a 9.3 per cent rise in food inflation – up from 9 per cent the previous quarter – according to the TNS figures.
Sales at Morrisons and Asda fared reasonably well in the 12-week period, recording sales growth of 9.6 per cent and 9 per cent respectively.
As a result, Morrisons’ market share has risen from 10.9 per cent to 11.2 per cent, while Asda now holds a 17.1 per cent share – up from its previous 16.8 per cent.
Waitrose, one of the UK’s more upmarket food retailers, saw sales increase by just 1.6 per cent, but suffered a drop in its share of the market from 3.9 per cent to 3.8 per cent.
The total grocery market grew by 6.7 per cent year on year, which reflects food price inflation rather than any real growth, according to Ed Garner, director of research at TNS Worldpanel.

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