Tesco's share of the UK grocery market has shrunk to its lowest level in almost a decade as British shoppers defected to German discount chains Aldi and Lidl to save money.
The latest data from Kantar Worldpanel shows Tesco's market share dropped to 28.7% in the 12 weeks to 2 March.
That compares with 29.6% a year ago and turns back the clock to late 2004 when the retailer was in the ascendant. At its peak, in October 2007, Tesco's share hit 31.8%.
The "big four" supermarket chains are facing unprecedented pressure as the grocery market polarises with the discounters stealing sales at the value end while Waitrose cleans up at the top.
"Over the past three years Waitrose, Aldi and Lidl have taken a combined 3.5 share points from the competition which equates to £4.4bn (in sales) per year," said Kantar Worldpanel director Chris Longbottom.
"This has put pressure on the big four supermarkets to compete for a shrinking middle ground and cut prices to directly combat the discounters."
Tesco not only lost market share but, like struggling rival Morrisons, it also experienced falling sales in a market that grew at 2.2%. Tesco's sales were down 0.6% while the picture was even bleaker at Morrisons which recorded a 3.2% slump.
Its market share fell to 11.1%, down from 11.8% a year ago. By comparison Aldi steamed ahead, posting sales growth of 33.5% and taking its market share a full percentage point higher than in the same period last year. Among the big four, Sainsbury's was the only retailer to hold its market share year-on-year at 17%.
Waitrose is at a record of 5%. The overall market growth was a step down from last month's 2.4%, which was already the smallest rise since mid-2005. Falling inflation was the main contributing factor with the Kantar Worldpanel measure now standing at 1.9% – the lowest since July 2010.
The market share attrition ratchets up the pressure on Tesco and Morrisons bosses Philip Clarke and Dalton Philips.
Last month Clarke told the City he had accelerated the turnaround plan for the Tesco with more store refurbishments in prospect and a £200m price cuts initiative focused on staple groceries.
Philips is due to report Morrisons' full year results on Thursday and analysts anticipate he too will announce a raft of promotions to repel the discounters.
theguardian.com
The latest data from Kantar Worldpanel shows Tesco's market share dropped to 28.7% in the 12 weeks to 2 March.
That compares with 29.6% a year ago and turns back the clock to late 2004 when the retailer was in the ascendant. At its peak, in October 2007, Tesco's share hit 31.8%.
The "big four" supermarket chains are facing unprecedented pressure as the grocery market polarises with the discounters stealing sales at the value end while Waitrose cleans up at the top.
"Over the past three years Waitrose, Aldi and Lidl have taken a combined 3.5 share points from the competition which equates to £4.4bn (in sales) per year," said Kantar Worldpanel director Chris Longbottom.
"This has put pressure on the big four supermarkets to compete for a shrinking middle ground and cut prices to directly combat the discounters."
Tesco not only lost market share but, like struggling rival Morrisons, it also experienced falling sales in a market that grew at 2.2%. Tesco's sales were down 0.6% while the picture was even bleaker at Morrisons which recorded a 3.2% slump.
Its market share fell to 11.1%, down from 11.8% a year ago. By comparison Aldi steamed ahead, posting sales growth of 33.5% and taking its market share a full percentage point higher than in the same period last year. Among the big four, Sainsbury's was the only retailer to hold its market share year-on-year at 17%.
Waitrose is at a record of 5%. The overall market growth was a step down from last month's 2.4%, which was already the smallest rise since mid-2005. Falling inflation was the main contributing factor with the Kantar Worldpanel measure now standing at 1.9% – the lowest since July 2010.
The market share attrition ratchets up the pressure on Tesco and Morrisons bosses Philip Clarke and Dalton Philips.
Last month Clarke told the City he had accelerated the turnaround plan for the Tesco with more store refurbishments in prospect and a £200m price cuts initiative focused on staple groceries.
Philips is due to report Morrisons' full year results on Thursday and analysts anticipate he too will announce a raft of promotions to repel the discounters.
theguardian.com
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