Íæż½ã½ã

Retailer update: Asda's sales plunge

Tesco is still at number one with its market share increasing from 27% to 27.6% over the past year

clock • 3 min read
Retailer update: Asda's sales plunge

A large drop in market share by the UK's third largest supermarket chain, Asda, is the main headline from the most recent retailer sales data compiled by Kantar.

In the past year, Asda's market share has fallen from 13.7% to 12.6%. That is down from 17.2% a decade ago, when the Leeds-based retailer was in second spot after Tesco.

Tesco is still at number one with its market share increasing from 27% to 27.6% over the past year. Sainsbury's has gained ground too – up by 0.5% to 15.3%.

Asda

In recent years, the standout supermarket performer has been Aldi, but it lost 0.2% market share this year, settling at 10%.

That contrasts with 0.4% market share growth by rival German retailer Lidl to 8.1%.

READ NOW: Shoppers bin a tenth of the food they buy

Online retailer Ocado's sales were 11.3% more in the latest 12-week reporting period compared to last year, making it the fastest growing grocer in percentage terms, with upmarket supermarket Waitrose also posting strong growth.

The market share figures are the latest blow for Asda, which recently reported a 5.3% decline in sales in the second quarter of the year.

Chief finance officer Michael Gleeson said: "We continue to make progress by investing in bringing our quality and value offering to more customers across the UK, with Asda's food price inflation trending lower than the market.

READ NOW: Producing Gouda cheese proves to be a saviour for Cornish farm

"However, we also know that there are some areas where we can and need to improve."

Company chair Stuart Rose described the results as embarrassing and suggested part-owner Mohsin Issa step back as chief executive. Mohsin and his brother Zuber bought the retailer for £6.8 billion in 2020 along with private equity company TDR capital. Zuber is reported to be selling his 22.5% stake to TDR.

The difficulties have prompted the GMB union to call on it to take urgent action to protect jobs and shoppers. In a statement, Nadine Houghton, from the national office at the union, said: "Asda's plummeting market share is entirely down to TDR Capital's financial mismanagement and Asda is now in a fight for survival.

"It is time for TDR Capital to get serious – more than 150,000 jobs are on the line if they get this wrong. TDR must start listening to its workers to arrest this worrying and dramatic decline."

Fast food

Supermarkets were not the only ones seeing subdued British food sales. Demand at fast food chains was down, with KFC reporting a 3% decline in UK sales in the second quarter and a 2% decline over the year.

READ NOW: Ever considered game? It could just change the way you think about food

European demand for Pizza Hut was 6% down in the quarter, although global sales for Yum, which owns both brands was up 3%. 

McDonalds saw a 1% decline in global sales in the three months to the end of June 2024, the first quarterly year-on-year decline since Q3 2022. 

Market watcher Meaningful Vision found that footfall had fallen in fast food restaurants had fallen in the year to May, but there has been a recovery after chains offered discounts and promotions.

"The use of promotions is growing as a key tool to generate additional traffic, which has not been growing," chief executive Maria Vanifatova told the BBC.

Meaningful Vision said that the number of promotions in fast-food restaurants, bakeries and coffee shops was up a third between April and June.

2011 JOHN DEERE 5100R

£±Ê°¿´¡

2022 CASE IH PUMA 165CVX

£±Ê°¿´¡

2002 LANDINI GHIBLI 80

£±Ê°¿´¡

More on Farm Business

Prime Minister says he is not 'targeting' family farms or landowners over Inheritance Tax

Prime Minister says he is not 'targeting' family farms or landowners over Inheritance Tax

"He (Sir Keir Starmer) could not have been clearer that if farmers are caught and family farms have to be sold, then that is fine by him"

clock 19 December 2024 • 5 min read
Farmer did not want to be a 'financial burden' as MP explains 'heartless' family farm tax raid

Farmer did not want to be a 'financial burden' as MP explains 'heartless' family farm tax raid

"The message he left to his family was he did this because he feared becoming a financial burden following changes to Inheritance Tax"

clock 19 December 2024 • 3 min read
North East Scotland tractor rally sends 'emphatic' message that farmers will 'not give in' over family farm tax

North East Scotland tractor rally sends 'emphatic' message that farmers will 'not give in' over family farm tax

"Labour's tax will finish the majority of family farms if it is left unchanged"

clock 19 December 2024 • 2 min read