Tesco: Not doing terribly well

4 June 2014

tesco NEW Tesco has had its worst three months sales in 20 years.

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.

6 comments

  • tin
    Maybe if they just stopped blatantly taking the piss out of their shoppers, some may be tempted to feel less taken-the-piss-out-of-ed?
  • ajhatt
    Im lucky in that we have an excellent fruit and beg shop and a butchers, the stuffs better and no more expensive than the stupermarkets. Usually use iceland for frozen stuff as I find it better value.... Simply cant deal with the robotic supermarket shop experience.....
  • ajhatt
    Im lucky in that we have an excellent fruit and veg shop and a butchers, the stuffs better and no more expensive than the stupermarkets. Usually use iceland for frozen stuff as I find it better value.... Simply cant deal with the robotic supermarket shop experience.....
  • Kevin
    Yeah because £3.3 billion profit is awful
  • LD
    Good
  • Maria k.
    The reasons Tesco are unpopular is the fact that they have ruined smaller towns but building big stores . Even when the locals say they do not want it. I boycot tesco and I hear horror stories from all over the uk, where everyone hates them. I refuse to use them, many many others feel the same wY. Their brash way of doing business has upset the masses. No one has mentioned their unpopular business ethic!

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