The mighty Tesco has seen its market share slip.
Last week, the retailer revealed an impressive 10 per cent jump in profits. But now it has emerged that the seemingly invincible retail giant has lost ground to the cut-price retailers.
According to the latest report from TNS, Tesco’s market share has slipped from 31.1 to 30.6 per cent during the 12 weeks to 19 April, compared to the corresponding period from a year ago.
That may not seem like much of a drop to you, but actually, a drop like that for Tesco is unprecedented.
Meanwhile, Asda, Sainsbury’s and Morrisons also saw their market share improve. Asda was the biggest winner, with its share rising from 16.9 to 17.2 per cent. Sainsbury’s, which is in third place, saw its market share rise by 0.1 percentage points, and is currently lagging 0.9 per cent behind Asda.
But the big winners were from lower down the order. Lidl and Aldi saw their market shares expand by 12.3 and 13.6 per cent respectively.
Mind you, they are still small beer in relative terms. Although they all saw big gains over the year, Iceland, Netto, Lidl and Aldi only have a 7.8 per cent market share between them.
Don’t shed too many tears over Tesco. Its market share may be slipping, but the retailer still managed to see total sales rise from £6.3bn in the four-week period a year ago, to £6.6bn in the most recent period.
And that really is the key point. In fact, total sales from all the supermarkets rose £20.3bn to £21.6bn. It seems while the rest of the economy struggles, the supermarkets gain. We are not eating any less, but maybe we are going out less, and changing the way we eat.
© Investment & Business News 2013