A below-par performance over the crucial Christmas period led to a decline in supermarket chain Tesco’s share of the UK grocery market, new data has revealed.
According to Kantar Worldpanel’s latest market study, Tesco’s sales growth was sluggish at 2.1 per cent during the 12 weeks to January 22, while the wider market expanded by 4.3 per cent – driving the company’s market share down to 29.9 per cent.
Asda and Sainsbury’s were little changed on Q4 2010, with shares of 17.5 per cent and 16.7 per cent respectively. Budget food retailer Iceland - currently in search of potential buyers - grabbed a 2.1 per cent share.
“There is considerable pressure on Tesco, with its growth rate of 2.1 per cent only half the total market average. This has caused its share to fall by 0.6 percentage points,” said Kantar Worldpanel director Edward Garner. “Iceland’s 2.1 per cent share is at its highest for ten years as shoppers continue to manage down their spending.”
Earlier this week, the Confederation of British Industry warned that there were signs many consumers had reined in their spending since the New Year.
