UK: Tesco matches national growth
Spending at Tesco stores rose 3.3 percent in the 12 weeks ended Jan. 20, the same pace as the industry, the researcher said today in an e-mailed statement. Tesco’s growth exceeded nearest rivals Asda and J Sainsbury Plc. The main loser was Morrisons.
“These results are a sign of stabilization for Tesco as the retailer gets back on track with its customers,” Kantar director Edward Garner said in the statement. “The improvement has put some pressure on the rest of the big four.”
Tesco this month reported only its second quarter of domestic same-store sales growth in eight as money-off coupons and an enhanced food offering helped spark a revival. The grocer, which has lost out to upscale chains such as Waitrose and discounters including Aldi and Lidl, is investing 1 billion pounds ($1.6 billion) to provide additional staff, refresh its own-brand products and brighten stores.
Tesco’s sales growth exceeded gains of 2.1 percent for Asda and 3.2 percent for Sainsbury, Kantar said. Spending at Morrison stores fell 1.7 percent from a year earlier, it said.
Morrison, whose stores are mostly located in the north of England, has lost shoppers amid a shift by cash-strapped consumers toward discount formats and online.
Source: bloomberg.com
