Grocery sales bounce lifts Tesco

Tesco’s turnaround plan is showing signs of working as industry data shows its sales performance improving in a month when the supermarket sector registers growth at a rate almost twice the previous period.

Tesco

Despite continuing to lose share, top-rated Tesco is showing signs of recovering month on month market share losses with a smaller fall in its share from 31.1% to 30.9% year-on-year. Sales grew 3.4%, Kantar says, up markedly on the 0.7% registered a month earlier.

Tesco unveiled several initiatives, including improving marketing, to reverse flagging UK sales in April.

Sector sales grew by 3.9% as customers took advantage of the lowest price inflation rate for 18 months, compared to 2.1% previously, according to new figures from Kantar Worldpanel.

The boost coincides with better weather and the opening week of the Olympics, but it is too early to gauge a direct correlation, says Kantar.

The ‘big four’ top supermarkets all performed strongly, with biggest growth at Asda and Sainsbury’s with jumps of 6.2% and 4.6% respectively. 

Strongest growth continues to come from the ‘value’ end of the market, with own label lines such as Tesco Everyday Value and Sainsbury’s Basics growing at 13%, while premium lines are falling 4% year-on-year.

This trend has helped value retailers Aldi and Lidl continue to record double-digit growth, seeing a big 26% jump at the former and a healthy 11.8% rise at the latter.

At the other end of the price spectrum, Waitrose has grown by 7.4% – a considerable uplift on the relatively weak 4.8% growth posted last period.

The latest figures reveal ‘things are starting to look-up’ says Kantar Worldpanel retail analyst Fraser McKevitt. “Shoppers might not yet notice it at the tills, but they are starting to benefit from lower grocery inflation,” he adds.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

If you are looking for our Jobs site, please click here