Financial News

  • 4 June 2014, 6:09

Asda Fighting Off Challenge From Discounters

Asda is the only so-called 'big four' supermarket chain growing its share of the market as the industry endures its slowest growth for eleven years.

Figures compiled byKantar Worldpanel showed the Walmart-owned firm's share of the grocery business rose to 17.1% in the 12 weeks to May 25 from 17% a year ago.

It achieved the growth at a time when the other major chains all saw their market shares slip as the hard discounters such as Aldiand Lidlbenefited from the squeeze on family budgets.

Tesco, which is expected to report disappointing first-quarter trading on Wednesday, saw its market share decline to 29% from 30.5% a year ago after a 3.1% dip in sales.

Morrisonssaw its share fall to 10.9% from 11.6% over the 12 months, with its sales tumbling almost 4%.

Sainsbury's suffered a market share fall to 16.5% from 16.7% a year ago.

Tesco and Morrisons have responded to the challenge posed by the discounters with price cuts - the vast majority imposed by Morrisons.

But it remained to be seen if the discounting would help arrest their respective share slides as Lidlsecured a record market share of 3.6% in the period - driven by its highest ever year-on-year growth of 22.7%.

Rival Aldi grew 35.9% over the period and retained its record 4.7% market share.

Kantar Worldpaneladded that inflation in the grocery sector fell for the eighth successive quarter to 1.2%, reflecting the price pressures in the market.