Sainsbury’s could slump to become the UK’s fourth largest supermarket group, according to analysis of the latest data from market research organisation TNS.
Analysts at investment bank JP Morgan believe Morrisons will overtake Sainsbury’s as the third biggest supermarket group. In a report issued JP Morgan wrote: “Now that Morrisons is going to keep the smaller Safeway stores, we think it may not be long until it overtakes Sainsbury’s in the market share stakes.”
Last month Sainsbury’s issued a profits warning, just before Sir Peter Davis stepped up to become chairman. JP Morgan believes that it will take significant price cuts at the troubled group, before the company becomes price competitive and can lift volumes.
The TNS data, which tracks consumer spending in UK supermarkets, showed that Morrisons’ sales growth outpaced its closest rivals, with sales growing 14 per cent in the 12 weeks to March 28 compared with the same period last year.
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