Tesco

Ticker TSCO

Today's data summary

Market closed
% change
-1.96%
Price Pence
234.70
Change
-4.70
As of 00:56 21 May 2019
Market cap. Pound sterling
22,985.34 million
As of 00:56 21 May 2019

Latest updates

Tesco has 'answered back'

The UK's biggest supermarket chain Tesco almost doubled its dividend after boosting its profits in what it called an "uncertain" market.

Begbies Traynor's Julie Palmer, says: “It hasn’t all been plain sailing though as discounted stores Aldi and Lidl have both encroached on Tesco’s dominance in recent years, and if the merger of Sainsbury’s and Asda goes ahead it will undoubtedly leave the resulting company at the forefront of the supermarket wars. Yet, Tesco has answered back, introducing its own discount chain last year – Jack’s – in the hope of gaining a foothold with this new market and growing its revenue further."

Traditional supermarkets have lost 'consumer relevance'

William Hall, strategy director at global branding and design agency Landor, said it's no surprise that Asda has overtaken Sainsburys. He said:

Where supermarkets like Tesco once seemed unassailable in terms of brand strength, stature and buying power, the growth of the discounters over the last five years has started to make its position at the top wobble a little. Ultimately, the establishment supermarket brands have seen a gradual drop in consumer relevance and are increasingly difficult to tell apart from the rest of the ‘crowd’ of brands in the market.

Asda now UK's second largest grocer

Asda shopping basket
Reuters

UK supermarkets saw their sales grow over the 12 week period to 24 March, except for Sainsbury's and Morrisons which both had slight sales drops, according to Kantar, publishing its latest sector report.

Aldi sales grew 10.6% with London its fastest growing region. More people are now visiting Aldi than Morrisons.

While Asda's sales grew only 0.1%, it has crept up to become Britain's second largest retailer.

Here's how market share now looks for the grocers:

  • Tesco 27.4%
  • Asda 15.4%
  • Sainsbury's 15.3%
  • Morrisons 10.3%
  • Aldi 8%
  • Co-op 6.1%
  • Lidl 5.6%
  • Waitrose 5%

Tesco has stopped selling dozens of household brands in a dispute with Unilever
Tesco has stopped selling dozens of household brands in a dispute with Unilever
Tesco CEO Dave Lewis says merger with Booker Group will 'enhance choice and value'
Tesco boss Dave Lewis says the merger with Booker Group will "enhance choice and value"
Driver who rammed Tesco shop worker jailed
Getaway driver breaks woman's back during attempt to flee store car park with stolen alcohol.