Shares hit as Tesco steps up price wars
Thursday 05 September 1996
The move immediately sparked a reaction from Sainsbury, which launched its autumn price savers campaign last week, including "buy one, get one free" deals on 700 items. "If there are any products cheaper at Tesco, we will match them," Sainsbury said.
Shares in all the supermarket groups fell as the City anticipated a reaction from rivals. Asda is tipped as the most likely to respond as it has styled itself as the lowest price supermarket. Tesco's shares fell 9p to 291p, Sainsbury dropped 8p to 376.5p, and Asda closed 4p down at 106p.
Tesco has struck while Sainsbury is promoting its loyalty card and new figures yesterday showed it was losing ground to Tesco once more in the battle for market share.
Figures compiled by market research group AGB showed that in the four weeks to 25 August, Tesco's share of the UK market increased from 20.7 to 21.4 per cent, compared with the same period last year. Sainsbury's share fell from 19.1 to 18.6 per cent. Safeway and Asda recorded strong gains.
Tony MacNeary of NatWest said the move would weaken the sector and compound the problems of weaker competitors.
- 1 Russell Brand accuses FOX News anchor Sean Hannity of terrorism after aggressive Israel-Gaza debate
- 2 Pope Francis issues top 10 tips for happiness – including don’t try to convert other people
- 3 Arturo Vidal to Manchester United: Midfielder set to force through move to Louis van Gaal's Red Devils - reports
- 4 Disney heiress Abigail disowns her share of family profits in West Bank company
- 5 Israel's propaganda machine is finally starting to misfire
The secret report that helps Israel hide facts
Land for gas: Merkel and Putin discussed secret deal could end Ukraine crisis
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
Richard Dawkins tweets: 'Date rape is bad, stranger rape is worse'
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Boozy, ignorant, intolerant, but very polite – Britain as others see us
- < Previous
- Next >
iJobs Money & Business
£20000 - £24000 per annum: Harrington Starr: A leading provider of web based m...
£28000 - £32000 per annum: Ashdown Group: Secretary (Sales Team Support) - Mat...
Competitive (DOE): Guru Careers: We are looking for an Assistant Management Ac...
£600 - £700 per day + competitive: Orgtel: Senior Investment Accounting Change...