Tesco, Asda and Morrisons continue to suffer
Tesco, Asda and Morrisons are continuing to have a lousy time of it, and were the worst performing food retailers in Britain in the last three months. Even though they've cut the prices to the tune of hundreds of millions, no-one is interested.
Tesco saw their sales falling by 1% year-on-year in the 12 weeks to 13 September, while over at Morrisons, theirs sunk by 1.4%, with Asda dropping by 2.9%. Surprisingly, Sainsbury’s was the only one of the Big Four who saw an increase, according to Kantar's figures.
We've reached that stage of the article where we're legally obliged to say that this is all the fault of Lidl and Aldi, and mention that people's shopping habits have changed in the UK.
So how are they doing? Well, Aldi increased sales by 17.3% and Lidl shot up by 16%. Mike Watkins, analyst at Nielsen, said: "These discounters are attracting new shoppers by opening new stores and using ads that communicate not just value, but quality and freshness too."
Waitrose, who have also been doing well despite the fang found in their lasagne, had a 2.9% rise in sales with their market share going from 5.1% to 5.2%.
Tesco’s market share is now the lowest it has been in a decade, standing at 28.2%. As well as the accounting black hole and selling off bits of itself, Tesco is being hamstrung by low morale among staff, thanks to job cuts and the axing of the company’s final salary pension scheme.