Cut-price Asda outshines rivals
Friday 14 June 1996
The trends are indentified in the latest market share figures from AGB, the market research group. They show that in the four weeks to 2 June, Tesco increased its UK share to 21.1 per cent against 20.7 per cent the previous year. This makes it the clear market leader ahead of Sainsbury's, whose share has fallen from 19.1 to 16.6 per cent. Asda has consolidated its position as number three in the market ahead of Safeway with a rise from 10.9 to 12.3 per cent.
It is also understood that Asda's like-for-like sales continue to outperform most in the industry. In the six months to April, comparative sales rose 10.5 per cent. Since April the increase is 12 per cent. Asda has styled itself as the cheaper alternative to its rivals with high-profile campaigns on the price of books, bananas and non-prescription medicines.
As Asda shares rose 2.75p to 120.75p, Tony MacNeary, food retail analyst at NatWest Securities, said: "It is a stunning performance. I'm not sure where the growth is coming from but with figures like these they do not need a loyalty card."
Sainsbury's is due to launch its Reward loyalty scheme on Monday.
According to a leaked internal memo, the company will need to increase sales by 2-4 per cent to cover the costs of the card. Tesco's ClubCard required a sales uplift of around 2 per cent to pay for itself.
The Reward card will offer Sainsbury's customers a 1 per cent discount on goods, with one point earned for every pounds 1 spent above pounds 5. This compares with Tesco's minimum of pounds 10.
- 1 What happens to your body when you give up sugar?
- 2 Drugs Live cannabis trial: Hash is less harmful than any other drug, expert claims
- 3 Turkish Airlines flight TK 726 crash-lands on Nepal runway amid dense fog
- 4 Penis size: Study revealing 'what's normal' sends international media into meltdown
- 5 Have sex with your iPad thanks to the new sex toy no-one asked for
Turkish Airlines flight TK 726 crash-lands on Nepal runway amid dense fog
Ayesha Ali death: Mother and her girlfriend found guilty of manslaughter of eight-year-old
George Clooney and Amal fail to get special treatment at New York restaurant
Cindy Crawford 'un-PhotoShopped' viral Marie Claire image was doctored, claims photographer
'A girl is more responsible for rape than a boy': The statement that shocked the world... except India
Durham Free School: 'Creationism taught at' free school facing closure
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
Ukip would cut billions from Scottish budget to fund English tax cuts
End of the licence fee: BBC to back radical overhaul of how it is funded
Ukraine crisis: Top Chinese diplomat backs Putin and says West should 'abandon zero-sum mentality'
Boris Nemtsov shot dead: Outspoken Putin critic who had expressed fears for his life is killed near the Kremlin
iJobs Money & Business
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
Voluntary post, reasonable expenses reimbursed: Reach Volunteering: Would you ...
£36,000 - £40,000: Christine McCleave: Are you looking for a new opportunity a...
£15000 - £18000 per annum: Recruitment Genius: This is a great opportunity for...