Tesco: Not doing terribly well
Customers have been literally fleeing the ailing supermarket chain at record speeds, according to some new data about such things.
The UK’s biggest supermarket's market share fell from from 30.5% to 29% in the 12 weeks to May 25 compared with a year earlier – the fastest fall since records began in 1994.
While still ahead of Asda (17.1%) and Sainsburys (16.5%), Tesco's 1.5% fall adds fuel to the debate that the chain are losing out to cheaper supermarkets which are hot on their heels, Such as Aldi whose sales rose by 35.9%. Waitrose saw their sales rising by 6.1% too. Seems Tesco have either got to appeal to regular shoppers or go after the middle classes.
It's all a bit gloomy news for chief exec Phil Clarke, who has tried various tactics to keep the customer satisfied. Such initiatives as a £200 million price-cutting plan on the basics, and attempts to make their myriad of Express branches look less like they're being run by wild animals.
The price wars between the Big Four supermarkets – Tesco, Asda, Sainsbury’s and Morrisons – is also starting to impact food inflation levels. It rose just 1.2%, while the grocery market grew just 1.7% – the lowest level for at least 11 years.
The big boys admit that the likes of Aldi and Lidl have had a significant impact on how people shop, with brand loyalty seemingly becoming a thing of the past.
Good old Asda appear to have got their shit together, as sales were up 2.4%, following long term price cuts and a further £300m price drop announced last year, a good few months before similar actions by Tesco and Morrisons.