A new study by market researcher Taylor Nelson Sofres (TNS) World Panel has found that Tesco, the largest retailer in the UK, suffered a drop in market share for the 12 week period to 22 February, down to 30.3 per cent from 30.8 per cent.
The share represented the group's lowest for three years, the report said, with Tesco now cutting prices for a second time this year to stop customers leaving to shop at low-price positioned Asda and discount retailers.
Indeed Wal-Mart owned Asda's market share increased to 17.3 per cent from 17 per cent during the corresponding period of 2007/08, boosting year-on-year growth to 8.8 per cent – a direct result of low pricing, TNS said.
'The pressure on Tesco share continues,' said TNS director of research ED Garner in the statement. 'Asda's low-price positioning is paying off.'
Discounter Aldi, Lidl and Netto saw combined market share increasing from 5.5 per cent last year to 6 per cent, the report said, while Morrison's 8.2 per cent revenue growth through the eight-week spell, increasing market share to 11.8 per cent from 11.6 per cent.
Sainsbury's revenue grew 5.7 per cent across the period, although market share dropped by 0.1 per cent, TNS said.
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