Tesco Sales Drop Eases As UK Grocery Leader Begins Turnaround
Tesco Plc’s sales decline eased further in the early weeks of 2016, adding to signs of a turnaround at the UK’s leading grocer.
Revenue fell 1.6 per cent in the 12 weeks ended January 31, the smallest drop since September, according to a report from researcher Kantar Worldpanel. Wal-Mart’s Asda saw its sales decline worsen, while growth slowed at J Sainsbury Plc, as discounters Aldi and Lidl further strengthened their positions.
Tesco’s performance suggests that the company has consolidated its better-than-expected sales over Christmas, when customers began returning to the UK’s largest supermarket chain. The shares rose 2.3 per cent to 176.7 pence at 9:03 am in London.
The growing popularity of Aldi and Lidl remains a thorn in the side of the UK’s largest grocers. Lidl’s sales rose 19 per cent in the 12-week period and Aldi’s gained 14 per cent.
“We can expect both retailers to continue to take market share this year as they fulfil their plans for more outlets," Fraser McKevitt, Kantar Worldpanel’s head of retail and consumer insight, said by e-mail.
News by Bloomberg, edited by ESM. To subscribe to ESM: The European Supermarket Magazine, click here.