Supermarket wars: Big Four in big trouble as Tesco, Asda and Morrisons register more declines

Tesco is still struggling to shrug off competition from the discount supermarkets, as data released this morning reveals yet more declines. 

 

While consumer spend within the grocery sector rose 0.9 per cent for the 12 weeks to 16 August, at Tesco it dropped by the same proportion. The price of a comparable basket of goods, meanwhile, dropped 1.7 per cent year-on-year, according to Kantar Worldpanel. 

 

Tesco was not the worst performer among the Big Four, however. That honour went to Walmart's Asda, where sales fell 2.5 per cent. 

 

Asda's chief executive Andy Clarke recently said the supermarket had hit its “nadir” and promised signs of a turnaround were in the post. 

 

Morrisons was also in decline for the three month period, with sales down 1.1 per cent. 

 

Only Sainsbury's managed a slight increase in sales, up by 0.1 per cent – its first growth since March. 

 

Aldi and Lidl continue to grow, although less strongly than in previous periods. Aldi sales were up 18 per cent, while Lidl was up 12.8 per cent. 

 

Waitrose was the best performing “home grown” supermarket, with sales up 3.7 per cent on last year. The Co-operative was also up, rising 1.1 per cent. 

 

Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said: “It’s been another successful period for the discounters… As anticipated, Asda has retaken its position as Britain’s second largest supermarket, despite a fall in sales of 2.5 per cent and a 0.6 percentage point fall in market  share.  

 

“The retailer’s greater focus on non-food items means its market share is traditionally higher in the summer, and it’s expected that Sainsbury’s will again become the number two retailer towards Christmas.”