Tesco sales falling at fastest rate in groceries
The trouble at Tesco simply won't go away, with reports that the retailers sales are falling at the quickest rate in the grocery industry. As we all know, Aldi and Lidl's successes are taking a huge toll on the supermarket.
Tesco sales fell by 3.6% in the 12 weeks to October 12th, reducing their market share from 30.1% a year ago to 28.8%, according to Kantar Worldpanel. It might not seem like a lot from the outside, but in the industry, this is bleak news. Or great news if you're a rival.
In simple terms, to turn this around, analysts at HSBC reckon that it will cost Tesco £3bn to get things sorted in the UK. The good news for customers is that this should mean a drop in prices on goods by 5 or 6%. It would also mean 20% more staff and an improvement in the quality of their food.
Sainsbury's are struggling too, with their sales down by 3.1% in 12 weeks, with Morrisons' sales down by 1.8%. Asda, who have been quietly getting on with business as usual of late, have seen their sales increase by 1%. These figures are all knocked into a cocked-hat though, as Aldi's sales have shot up by 27.3% and Lidl's by 18.1%.
According to a detailed new survey of shoppers, Tesco’s brand in the UK is "severely compromised" thanks to a general and widespread disillusionment from customers with Tesco's service. Research from the firm Lazarus shows that Tesco currently have the lowest overall customer satisfaction metrics in the grocery industry. As a brand, it has been labelled as "tarnished".
TOPICS: High Street News