Tesco and Sainsbury’s have gained market share this month, benefiting from Asda’s weakening position in the grocery sector.
- Tesco’s market share has risen to its highest since December 2017, increasing from 27.4% to 28%.
- Sainsbury’s also saw a rise in market share, up by 0.4 percentage points to 15.2%.
- Asda’s market share has decreased significantly, dropping from 13.7% to 12.6%.
- Challenges for Asda include heavy debt and IT separation issues from its former parent company.
Britain’s leading grocery retailer, Tesco, has managed to increase its market share to 28%, the highest since December 2017. This rise is attributed to a 5.2% increase in sales over the 12 weeks ending on 29 September.
In a similar vein, Sainsbury’s has enhanced its market share by 0.4 percentage points, reaching 15.2%, following a 5.1% boost in sales. These gains highlight a shift in consumer preferences towards these top supermarket chains.
Contrastingly, Asda has faced a substantial decline, with its market share falling from 13.7% to 12.6%. This decline is linked to falling sales, which pose a significant challenge for the chain.
Asda is striving to revamp its operations, with Lord Stuart Rose stepping in as chair, as Mohsin Issa reduces his involvement in daily activities. This leadership change is part of Asda’s broader strategy to recover its standing.
The supermarket’s struggles are compounded by a considerable debt burden and complex efforts to disentangle its IT systems from those of its former parent company, Walmart.
The evolving dynamics in the UK’s grocery sector illustrate changing consumer preferences and the challenges facing established players like Asda.
