ASDA sees market share rise
UK supermarket chain Asda was today offered hope that its strategy of aggressive price-cutting was eating into the dominance of market leader Tesco.
Data from market research group TNS Superpanel showed Asda has picked up 0.2% of the grocery market at the expense of its biggest rival.
Tesco was found to control 30.3% of the market in the 12 weeks to September 11, but this was down from the all-time peak of 30.5% reported during the previous month.
In contrast, Asda saw its slice of the UK market rise to 16.9% from the 16.7% mark seen last month.
Edward Garner, of TNS Superpanel, said: “This is as a result of Asda’s renewed concentration on price and promotional activity in a ferociously competitive market place.”
Asda has been criticised by analysts this summer for taking its eye off the ball on price since new chief executive Andy Bond began overhauling the administration of the group.
Around 1,400 management posts were cut in July when Mr Bond conceded that a slowdown in sales over previous months was unacceptable.
Today’s data shows Asda is continuing to hold off a rejuvenated Sainsbury’s in the battle to be the UK’s second biggest grocer.
Sainsbury’s lifted its share of the market to 15.7% – up from 15.4% last month and 15.3% a year ago.
Bosses at Morrisons were also heartened by signs that its position in the market was stable at 11.3%, although this was far below the 13.6% level of a year earlier.
Meanwhile, Somerfield hit a peak of 4.3% this period – a growth rate of 22% that was fuelled by acquisitions from Safeway and conversions from Kwik Save.
