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Tesco loses market share as Waitrose leads the way

In: Retailers, Industry news

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Tesco lost market share to rivals over the 12 weeks to 9 August, new TNS figures show.

In the week Tesco started doubling Clubcard points in an attempt to lure new shoppers and keep the loyalty of existing customers, the figures showed its market share fell 0.2 percentage points to 31% year-on-year. Sales rose 5% at Tesco during the same period – below the overall supermarket sales growth of 5.6%.

Waitrose performed best of the multiples over the period, with 10.2% sales growth.

“Two factors have contributed to this – the successful introduction of the Essentials range and the completed conversion of stores acquired from the Co-operative takeover of Somerfield,” said TNS. Waitrose also increased market share from 3.7% to 3.9%.

The data also suggests that the discounter boom has come to an end. Year-on-year growth rates of 8.1% for Aldi and 6.3% for Lidl were still ahead of the market as a whole – but far lower than Aldi’s growth of 26% seen at the end of 2008.

“Our data shows that the new shoppers attracted to these outlets and their low prices have largely failed to convert to regular loyal customers,” said TNS.

Growth at Morrisons was 9.2%; Asda 8.3%; and Sainsbury’s 7.6%. Market share at these retailers also increased.


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