Tesco slips as Iceland enjoys a cool winter
Tesco’s dominance over the grocery market has slipped, dipping below 30% for the first time since May 2005, the latest grocery share figures from Kantar Worldpanel has shown.
The news follows a disasterous Christmas for the retailer, when a 2.3% fall in like-for-like sales (excluding VAT and fuel) highlighted flaws in its Big Price Drop strategy and resulted in its share price tumbling.
Asda showed a record performace, its share rising to 17.5%, from 16.9%, following the completion of the Netto conversions, while Sainsbury’s market share grew to 16.7%, up 5%, consolidating its strongest hold of the market since March 2003.
However, it was Iceland that saw the largest increase, up 11.3%. This is its strongest performance in ten years and brings its market share to 2.1%. Discounters Aldi and Lidl continued to show strong results, with market share up to 3.5% and 2.5% respectively, although the collective share of the discounters remains relatively unchanged, due to the loss of Netto.
Edward Garner, director at Kantar Worldpanel, said: “There is considerable pressure on Tesco, with its growth rate of 2.1% only half the total market average. This has caused its share to fall by 0.6%."
The grocery market is growing at 4.2% per year which remains below the food inflation rate as shoppers continue to seek value for money.