Tesco lost grocery market share in past quarter - Kantar

Tue Dec 4, 2012 7:46am EST

* Tesco share 30.7 pct in 12 weeks to Nov. 25 - Kantar
    * Tesco share down 0.3 pct year-on-year - Kantar
    * Kantar data published a day before Tesco's Q3 sales update
    * Morrisons, Asda also lose share, Sainsbury gains

    LONDON, Dec 4 (Reuters) - Tesco, Britain's biggest
retailer, lost year-on-year grocery market share in its home
market over the last quarter as its sales growth lagged that of
the overall market, industry data showed on Tuesday.
    Market researcher Kantar Worldpanel said Tesco's grocery
market share edged down to 30.7 percent in the 12 weeks to Nov.
25, having been 31.0 percent in the 12 weeks to Nov. 27 last
year.    
    Tesco is battling to regain momentum against a weak economic
backdrop, with consumers fretting over job security and a
squeeze on disposable incomes. 
    Tesco has suffered in the economic downturn more than its
main British supermarket rivals, in part because it sells more
discretionary non-food goods where shoppers have been cutting
back most.
    Tesco's sales rose 2.2 percent over the 12-week period this
year compared to growth for the overall market of 3.2 percent
which was below inflation of 3.5 percent.
    Last month Kantar said Tesco's share had fallen 0.5 percent
year-on-year to 30.5 percent in the 12 weeks to Oct. 28.
 
    The trading period covered by Kantar almost mirrors the 13
weeks to Nov. 24, Tesco's fiscal third quarter, on which the
firm will report on Wednesday.
    Analysts are forecasting sales in a range of down 0.9
percent to up 0.2 percent at British stores open for more than a
year, excluding fuel and VAT sales tax, with the outcome
reflecting a weak non-food market in the UK. 
    That performance would compare with an increase of 0.1
percent in the second quarter, which had been Tesco's first rise
after 18 months of decline, and would raise questions over
whether Tesco's 1 billion pounds ($1.6 billion) recovery plan is
struggling to gain traction. 
    According to the Kantar data, Wm Morrison Supermarkets
, Britain's No. 4 grocer, was the biggest loser of the
quarter, with its sales falling 1.1 percent and its market share
sliding to 11.7 percent from 12.3 percent in the same period
last year.
    Last month Morrisons reported a worsening sales decline and
parted company with its commercial director, saying it had
failed to get its selling points across to consumers.
 
    Wal-Mart Stores' Asda, Britain's No. 2 grocer, saw
its market share edge down 0.1 percent to 17.3 percent.
 
    The big winner was No. 3 grocer J Sainsbury. Its sales rose
4.7 percent and its share rose 0.2 percent to 16.9 percent. Last
month Sainsbury's posted a 5.4 percent increase in first-half
profit. 
    Kantar highlighted a particularly strong performance from
discounter Aldi, whose sales rise of 27.3 percent gave it a
market share gain of 0.5 percent to 3.0 percent.
    Separately on Tuesday an industry survey showed British
retail sales edged up in November, though by less than analysts
were expecting, as shoppers hunted for cheap Christmas gifts.
 
    
    Following is a summary of Kantar's market share figures in
percent:
                  12 wks to     12 wks to     pct change
                  Nov. 25 2012  Nov. 27 2011  in sales
 Tesco            30.7          31.0          2.2
 Asda             17.3          17.4          2.7
 Sainsbury        16.9          16.7          4.7
 Morrison         11.7          12.3          -1.1
 Co-operative     6.5           6.7           -0.5
 Waitrose         4.5           4.4           7.5
 Aldi             3.0           2.5           27.3
 Lidl             2.8           2.6           11.0
 Iceland          2.0           1.9           9.2