Little cheer for Morrisons as Tesco slows sales slump


(MENAFN- ProactiveInvestors) Morrisons (LON:MRW) has replaced Tesco (LON:TSCO) as the worst performer of the big four grocers in the run up to Christmas according to a new survey.

Consumer research firm Kantar Worldpanel said each of the big four supermarkets saw sales fall in the 12 weeks to 7 December but Morrisons was the worst performer among the majors with sales falling by 3.2% against 2.5% in the three months to 9 November.

Sales at Tesco on the other hand stabilised a little and a fall of 2.7 % was its best performance since June.

Although prices have fallen thanks to more competition from discount chains shoppers put slightly more in their baskets compared with the same time last year.

That meant the grocery market showed growth of 0.1% after Kantar Worldpanel’s survey recorded its first ever decline last month.

Meanwhile Aldi and Lidl are heading into Christmas with a record combined market share in the UK grocery market.

The two German no-frills retailers had a market share of 8.6% in the 12 weeks to 7 December up 1.5 percentage points over the past year.

Aldi recorded the fastest growing sales of any retailer at 22.3% followed closely behind by Lidl with 18.3% sales growth.

The emergence of the two firms has led to a price war between Britain’s supermarkets with the big four retailers - Tesco and Sainsbury’s (LON:SBRY) Morrisons and ASDA - cutting margins to compete.

Kantar’s Fraser McKevitt said supermarket competiton was ramping up ahead of the Christmas period.

“Retailers are selling more items on promotion leading to like-for-like prices falling by 0.7% compared with this time last year.

“Cheaper groceries are an early Christmas present for shoppers saving them £182mln in the past 12 weeks alone but this puts pressure on the supermarkets.


ProactiveInvestors - UK

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