Tesco share price falls as supermarkets suffer for third day amid renewed concerns about discounters Aldi and Lidl
When one supermarket sneezes, it seems the rest catch a cold.
Shares in troubled supermarket Tesco fell to their lowest level since January this morning, two days after Asda reignited concerns over the threat from German discounters.
Tesco shares dropped 1.77 per cent today, while Sainsbury's shed 0.77 per cent. Both are down about four percent since Tuesday, when Asda reported its worst quarterly result in the 16 years it's been owned by US chain Wal-Mart.
Warning bells flashed as Asda's chief exec Andy Clarke blamed falling sales on competition from discounters such as Aldi and Lidl.
He also said industry leader Tesco's fall from grace created "sufficient oxygen” for it to grow, adding that he believes Asda's ability to snatch more market share depends on how fast the "big four" can get back into shape.
Discounters have been eating into the market share of Tesco, Asda, Sainsbury's and Morrisons since the beginning of the financial crisis.
The likes of Aldi and Lidl have been scrimping on advertising and packaging to offer customers goods at rock bottom prices. At the same time, Tesco and Sainsbury's have been reducing the price of their own stock in a bid to keep their customers.
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