Tesco’s rivals eat into its market share
TESCO, the UK’s biggest retailer, is continuing to lose market share, according to new figures, despite relaunching its Clubcard.
The supermarket recently beefed up its loyalty card scheme, offering shoppers two points for every £1 spent, as opposed to just one.
It had hoped the tactics would stop customers shopping at rivals like Asda and WM Morrison, which have both gained market share thanks to a price-sensitive message.
But new figures from TNS Worldpanel show that the relaunched Clubcard hasn’t yet worked for Tesco, which had a 31 per cent share of the grocery market in the 12 weeks to 9 August, 0.2 per down cent lower than the same period last year.
Meanwhile, most of its rivals enjoyed a lift in market share, with Asda’s share up 0.5 per cent to 17.2 per cent.
J Sainsbury’s share grew by 0.3 per cent to 15.9 per cent while WM Morrison’s slice of the market was 0.4 per cent bigger at 11.4 per cent.
Tesco grew by five per cent in the 12 week period, upping its till roll excluding petrol to £6.7bn, although it underperformed the supermarket sector, which grew by 5.9 per cent.
Asda grew by 8.3 per cent, J Sainsbury by 7.6 per cent and Wm Morrison by 9.2 per cent.
But it was Waitrose that grew the most in the twelve week period, with its total till roll excluding petrol growing 10.2 per cent to £837m. The high-end grocer also grew its market share by 0.2 per cent to 3.9 per cent.
FAST FACTS TESCO’S CLUBCARD
• Tesco has relaunched its Clubcard, offering customers two points for every £1 they spend.
• This means a family spending £90 a week at Tesco between now and Christmas could now earn £34 in Clubcard vouchers instead of £17.