Tesco market share drops below 30% as Asda posts record performance

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Tesco’s share of the UK grocery market has fallen below 30% for the first time since May 2005, according to the latest grocery share figures from Kantar Worldpanel for the 12 weeks ending 22 January 2012.

Tesco grew at 2.1% in the latest period, only half the total market average and, as a result, its share fell back 0.6% to 29.9%.

The last time Tesco’s share was below 30% was in May 2005 when the supermarket had a 29.7% stake.

Asda, in contrast, has enjoyed a record performance and increased its market share from 16.9% a year ago to 17.5%. Iceland has also put in its strongest performance in 10 years with 11.3% growth in the latest period. 

Edward Garner, director at Kantar Worldpanel, said: “There were mixed fortunes among the big four supermarkets this month. The completion of the Netto conversion has led to an all-time record performance for Asda, lifting its share from 16.9% a year ago to 17.5% now. Sainsbury’s has also grown its share to 16.7%, consolidating its strongest hold of the market since March 2003. 

“In contrast, 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 percentage points.

“Iceland’s 2.1% share is at its highest for 10 years as shoppers continue to manage down their spending. With bids for the chain closing today, these figures are promising for potential buyers and show the importance of a good value-for-money message in today’s grocery market.”

Elsewhere, Aldi and Lidl continue their strong run, both increasing their shares to 3.5% and 2.5% respectively. However, the disappearance of Netto means the size of the total discount sector is relatively unchanged at 6%.