Tesco's market share fell to 30.5% during 12-week period that ended Nov. 27, down from 30.7% in same period a year ago; Tesco's 3.8% sales growth lower than U.K. supermarkets' sales growth of 4.2%
December 6, 2011
– According to Kantar Worldpanel, a market research group, grocer and general merchandiser Tesco Plc’s market share fell to 30.5% during the twelve-week period that ended Nov. 27, in comparison to 30.7% during the same time last year, reported Reuters reported on Dec. 6.
Kantar reported that, of Britain’s four largest supermarkets—the others being Asda Stores Ltd., Morrisons Supermarkets Plc., and Sainsbury’s Supermarkets Ltd.—during the twelve-week period that ended on Nov. 27, Tesco was the only to lose market share.
During that same period, Tesco’s 3.8% sales growth was lower than the U.K. supermarkets’ growth of 4.2%. The British inflation rate is 6.2%.
During the twelve-week period that ended on Oct. 30, the U.K. supermarkets’ growth rate was 4.6%.
Tesco’s loss in market shares followed its £500 million (US$785 million) "Big Price Drop" program, which was launched in October.
According to Kantar, Tesco’s drop in market shares was not unexpected.
Edward Garner, the director of Kantar, said, "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."
The primary source of this article is Reuters, London, England, on Dec. 6, 2011.