Tesco Watford fresh produce

Tesco: Sales more healthy in run up to Christmas

Tesco’s sales decline slowed to 2.7 per cent in the last 12 weeks leading analysts to suggest performance at the UK’s largest retailer is showing signs of “stabilising”.

Meanwhile the UK grocery market has returned to marginal growth of 0.1 per cent after last period’s first-ever recorded decline.

Figures from Kantar Worldpanel for the 12 weeks ending 7 December showed that, although like-for-like sales among retailers were down 0.7 per cent, more promotions have led to shoppers increasing weight of purchase.

“Tesco’s sales slowed by 2.7 per cent in the latest 12-week period. This is its best result since June, showing some limited signs of stabilisation for the retailer,” said head of retail and consumer insight at Kantar, Fraser McKevitt.

Discounter Aldi recorded the fastest sales growth during the period of 22.3 per cent, followed by Lidl with 18.3 per cent.

Waitrose has grown sales by six per cent, extending an unbroken pattern of growth dating back to February 2009, while Asda’s decline of one per cent didn’t stop it recording the best performance among the top four.

Sainsbury’s and Morrisons both lost share with sales dipping by 1.8 per cent and 3.2 per cent respectively.

“Cheaper groceries are an early Christmas present for shoppers, saving them £182 million in the past 12 weeks alone but this puts pressure on the supermarkets. We expect grocery deflation to continue well into 2015 as the price war rumbles on,” added McKevitt.