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Tesco loses market share

Wednesday December 7th 2011

Tesco has seen its share of the grocery market slip in the 12 weeks to 27 November following the launch of its 500 million Price Drop campaign.

Figures released by Kantar Wordpanel showed that the supermarket giant’s share of the market fell from 30.7% a year ago to 30.5% and its growth rate of 3.8% has fallen behind that of the market.

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Edward Garner, director at Kantar Worldpanel explained: “This may at first seem disappointing for Tesco given the ‘Big Price Drop’ initiative; however, it is not wholly unexpected.  With more products available for less, the amount of cash taken at the tills has understandably dropped.  Despite this, Tesco has successfully attracted more shoppers to its stores through the promotion. This strategy, coined ‘self imposed deflation’ by Tesco, is something we have seen in the past and it’s clear that Tesco is using this method again to help shoppers save their pennies.”

Morrisons saw its year-on-year share increase from 12.0% to 12.1%.  Asda posted its strongest growth since December 2009 as the integration of the UK Netto stores is completed.

Discount retailers Aldi and Lidl continued to see strong growth helped by some shoppers migrating from Netto. However, the growth was below the record levels seen earlier this year. The discount sector as a whole slipped back to 6.0% from 6.2% a year ago.

Waitrose grew its share from 4.1% a year ago to 4.3%.