Tesco are due to release their first-quarter report tomorrow but figures indicate that their sales and market share fell over the last three months.
According to the Kantar Worldpanel, the share of the domestic market that Tesco had cornered fell by 1.5% during the 12 weeks that ended 25th May to 29%, which is still a huge portion of the market, but investors are becoming concerned.
Experts feel that the report by Tesco reveal the lowest quarterly report in UK sales in more than a decade, showing just how badly they are fairing in today’s market. The most threatening opposition seem to be the discount stores Aldi and Lidl as well as high end store Waitrose.
These stores which aren’t playing the middle ground and trying to serve everybody, are clawing in larger market shares as people can go and spend much less on the weekly shop. (Or, in the case of Waitrose, spend more on higher quality.)
On the other hand, according to Kantar, Asda has managed to gain some of the market share and is growing, likely due to the price changes it made towards the end of last year before Tesco’s price drops.
Sainsbury’s and Morrisons also reportedly lost market share. The quarterly report due will give us a true look at what is happening to Tesco’s business tomorrow.
