Tesco market shrinks to smallest in 10 years

Britain’s grocery market is continuing to polarise shoppers with more people moving to discount retailers such as Lidl and Aldi, and also more heading to upmarket stores like Waitrose.

The defections have seen Tesco’s share of the market fall to its lowest level since 2004, with the latest figures from Kantar Worldpanel showing Tesco’s share falling to 28.7% in the 12 weeks to March 2. In comparison, last year, the store’s share was 29.6%, and in 2007, at its peak, Tesco’s market share was at 31.8%.

Kantar Worldpanel director Chris Longbottom said: “Over the past three years Waitrose, Aldi and Lidl have taken a combined 3.5 share points from the competition which equates to £4.4bn [in sales] per year.”

“This has put pressure on the big four supermarkets to compete for a shrinking middle ground and cut prices to directly combat the discounters.”

Along with Tesco, Morrisons has also failed to benefit from the grocery market which is growing by 2.2%, though down from last month’s 2.4%.

Morrisons recorded a 3.2% fall in sales, which saw its market share slump to 11.1%, down from 11.8% last year.

Aldi has recorded sales growth of 33.5%, taking its market share a full percentage point higher than last year.

Sainsbury’s is the only retailer among the Big Four supermarkets to maintain its market share at 17%.

Waitrose has grown to a record 5%.

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