TOP NEWS: Tesco outperforms industry as market share surges - Kantar

(Alliance News) - Tesco PLC stood out from the UK grocery pack as it grew its market share and ...

Alliance News 7 December, 2021 | 8:45AM
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(Alliance News) - Tesco PLC stood out from the UK grocery pack as it grew its market share and saw sales dip only modestly over a recent 12-week period, data from Kantar showed on Tuesday.

Across the wider industry, UK take home grocery sales fell by 3.8% in the 12 weeks to November 28. However, sales remain strong compared to pre-pandemic levels, up 7.0% on a two-year basis.

"Grocery sales are now being compared against November 2020 when we had tighter restrictions across Scotland and Wales and the second lockdown in England. Circumstances are very different this year. With people back in the office a few days a week and restaurants and cafes open, we're putting less in our grocery baskets for cooking at home and as a result, the average shop size has shrunk by 8% this month versus last year," explained Fraser McKevitt, head of retail and consumer insight at Kantar.

Against this backdrop, Tesco fared well in the period, with sales falling just 1.4% year-on-year. At the same time, Tesco boosted its UK market share to 27.7% from 27.0% a year ago.

This was Tesco's biggest market share gain over a 12-week period since 2007, taking it to its highest market share since February 2019.

J Sainsbury PLC fared less well. It saw its market share edge down to 15.4% from 15.7% and its sales fall 5.3%. Wm Morrison Supermarkets sales dropped 7.1% and its slice of the UK market declined to 10.0% from 10.3%.

The German discounters performed strongly again, with sales at Aldi and Lidl both only falling 1.1%. Ocado PLC also outperformed the wider UK market, sales down 2.4% on a year ago, while the online grocery increased its market share to 1.8% from 1.7%.

An uptick in sales could lie ahead for Ocado if worries over the new Omicron coronavirus variant grow.

"Our excitement about Christmas this year has been slightly tempered as news of the Omicron Covid-19 variant has emerged. Online grocery sales fell by 12.5% in the four weeks to late November, as we compare against more orders last year during the second lockdown. As concerns grow over rising case numbers, we expect some people will prefer to shop online again to limit their visits to stores," said Kantar's McKevitt.

Tesco shares were up 0.8% early Tuesday in London, while Sainsbury's was up 1.1% and Ocado up 1.2%. Morrisons is no longer listed following its acquisition by private equity firm Clayton, Dubilier & Rice.

By Lucy Heming; lucyheming@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Sainsbury (J) PLC 283.70 GBX -1.18
Ocado Group PLC 1,425.50 GBX -2.43
Tesco PLC 288.75 GBX 0.50

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