Tesco’s share price is falling on the back of Kantar figures showing sales are dropping again

Tesco was the biggest loser on the FTSE 100 this morning, with the share price dropping like a stone after Kantar's latest market update. 

 

Sales at the troubled supermarket fell 1.3 per cent for the 12 weeks to 21st June – underperforming the sector average, which slipped back into a decline of 0.1 per cent. That has reduced its market share further from 28.9 per cent this time last year to 28.6 per cent now. 

 

Tesco's share price fell 2.5 per cent on the news. It closed the day down around 2.4 per cent. 

 

However it was not the worst performing supermarket in the UK. Asda's sales fell 3.5 per cent, taking its market share to the same level as Sainsbury's – both stand at 16.5 per cent. A year ago, Asda took 17.1 per cent of spend in the sector, while Sainsbury's took 16.7 per cent. 

 

 

Morrisons continued to shake off its prior woes, with growth of 0.6 per cent, taking its market share to 11 per cent. At the Co-operative, sales were flat, but ahead of the market for the first time in nearly four years. 

 

However it was the challenger grocers Aldi and Lidl that continued their ascent up the sector, up 15.4 per cent and 9.1 per cent respectively. Sales at Waitrose climbed a respectable 1.2 per cent, giving it a 5.1 per cent market share. 

 

Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, explains: “Morrisons has seen the largest sales increase among the ‘big four’ retailers for the second month in a row… supported by an increase in online shopping.”

 

He added: “While only a small [market share] increase against a weak 2014, this does represent the first market share gains made by Morrisons since December 2011.” 

 

Groceries are now 1.7 per cent cheaper compared with a year ago.  

 

“Prices have been falling since September 2014, but the rate of decline is slowing meaning they are projected to rise again by the end of this year,” he said.