Lacklustre Morrisons loses big slice of market

Morrisons appears to have lost substantial market share to its rivals over the last month after the sales gap between it and that of Tesco, Asda and Sainsbury's widened, according to industry data.

Kantar Worldpanel revealed that Sainsbury's was the grocery sector's top dog, following its posting a market-busting 6.1 per cent rise in sales over the four weeks to 2 September, which included the second week of the Olympics. The market research firm also expects Sainsbury's to have benefited from its sponsorship of the Paralympics that ended on 9 September, although these figures won't be available until next month.

However, Morrisons delivered a lacklustre 0.5 per cent rise in revenues over the four weeks, compared with till-roll growth of 2.6 per cent across the sector.

The Bradford-based grocer's figures lagged Asda's 4.7 per cent and Tesco's 2.6 per cent, as well as Aldi's phenomenal 28.8 per cent and Waitrose's 10.3 per cent growth.

Edward Garner, a director at Kantar, suggested that sales at Morrisons were weaker because it does not have an online grocery offer and only has a small number of convenience stores, as these are the "two areas which are currently major contributors to the growth of its three main competitors".

But Morrisons' investors will be reassured by the fact that convenience and internet retailing are less profitable than large store operations.

Over the 12 weeks, Tesco's sales rose by 2.8 per cent – which was behind 3.3 per cent growth across the grocery sector – and its market share slipped by 0.1 per cent to 30.8 per cent, according to Kantar.

Dave McCarthy, an analyst at Investec, said: "Tesco must be disappointed. It has lost share and sales growth has lagged the industry average once again. This is despite a huge investment in new stores, a step up in store staffing levels and claims of being more price competitive."

Philip Clarke, Tesco's chief executive, unveiled a £1bn investment plan in April to turn around the performance of its UK operation. A key focus has been on improving the market leader's core food business. Kantar data seen by The Independent suggests that Tesco's food and drink performance has been ahead of the market over recent weeks.

Morrisons's total sales again lagged its rivals over the 12 weeks, with a 1.1 per cent rise. But this was ahead of an actual 1.2 per cent fall in sales at the Co-operative Group. Aldi's sales powered ahead by 26.6 per cent.

Start your day with The Independent, sign up for daily news emails
ebookA unique anthology of reporting and analysis of a crucial period of history
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Guru Careers: Software Developer / C# Developer

£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...

Neil Pavier: Management Accountant

£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...

Sheridan Maine: Commercial Accountant

£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...

Laura Norton: Project Accountant

£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...

Day In a Page

Abuse - and the hell that came afterwards

Abuse - and the hell that follows

James Rhodes on the extraordinary legal battle to publish his memoir
Why we need a 'tranquility map' of England, according to campaigners

It's oh so quiet!

The case for a 'tranquility map' of England
'Timeless fashion': It may be a paradox, but the industry loves it

'Timeless fashion'

It may be a paradox, but the industry loves it
If the West needs a bridge to the 'moderates' inside Isis, maybe we could have done with Osama bin Laden staying alive after all

Could have done with Osama bin Laden staying alive?

Robert Fisk on the Fountainheads of World Evil in 2011 - and 2015
New exhibition celebrates the evolution of swimwear

Evolution of swimwear

From bathing dresses in the twenties to modern bikinis
Sun, sex and an anthropological study: One British academic's summer of hell in Magaluf

Sun, sex and an anthropological study

One academic’s summer of hell in Magaluf
From Shakespeare to Rising Damp... to Vicious

Frances de la Tour's 50-year triumph

'Rising Damp' brought De la Tour such recognition that she could be forgiven if she'd never been able to move on. But at 70, she continues to flourish - and to beguile
'That Whitsun, I was late getting away...'

Ian McMillan on the Whitsun Weddings

This weekend is Whitsun, and while the festival may no longer resonate, Larkin's best-loved poem, lives on - along with the train journey at the heart of it
Kathryn Williams explores the works and influences of Sylvia Plath in a new light

Songs from the bell jar

Kathryn Williams explores the works and influences of Sylvia Plath
How one man's day in high heels showed him that Cannes must change its 'no flats' policy

One man's day in high heels

...showed him that Cannes must change its 'flats' policy
Is a quiet crusade to reform executive pay bearing fruit?

Is a quiet crusade to reform executive pay bearing fruit?

Dominic Rossi of Fidelity says his pressure on business to control rewards is working. But why aren’t other fund managers helping?
The King David Hotel gives precious work to Palestinians - unless peace talks are on

King David Hotel: Palestinians not included

The King David is special to Jerusalem. Nick Kochan checked in and discovered it has some special arrangements, too
More people moving from Australia to New Zealand than in the other direction for first time in 24 years

End of the Aussie brain drain

More people moving from Australia to New Zealand than in the other direction for first time in 24 years
Meditation is touted as a cure for mental instability but can it actually be bad for you?

Can meditation be bad for you?

Researching a mass murder, Dr Miguel Farias discovered that, far from bringing inner peace, meditation can leave devotees in pieces
Eurovision 2015: Australians will be cheering on their first-ever entrant this Saturday

Australia's first-ever Eurovision entrant

Australia, a nation of kitsch-worshippers, has always loved the Eurovision Song Contest. Maggie Alderson says it'll fit in fine