Tesco’s recovery plan is gaining momentum after new figures showed sales have edged higher in recent weeks, a new report has shown.
Market researcher Kantar Worldpanel said sales at the UK’s biggest supermarket rose 0.3% over the 12 weeks to March 29 versus last year, indicating new boss Dave Lewis’s recovery plan is gaining momentum.
The increase, which followed data last month that showed Tesco’s strongest sales performance in 18 months, helped the supermarket to virtually halt its market share decline.
Since joining Tesco as chief executive last September, Mr Lewis has cut prices on fresh produce and branded goods, improved product availability and stepped up customer service, seeking to win back shoppers who deserted the supermarket for discounters Aldi and Lidl.
Of Tesco’s major rivals, Sainsbury’s saw a sales increase of 0.2% but Asda and Morrisons recorded sales declines of 1.1% and 0.7% respectively.
The discounters’ sales continued to climb, with Aldi up 16.8% and Lidl up 12.1%, taking their market shares to 5.3% and 3.7%. Kantar said Aldi was now Britain’s sixth largest supermarket.
Britain’s overall grocery market grew 1% over the period, Kantar said. Grocery inflation was down 2%, reflecting the impact of Aldi and Lidl and the market’s competitive response, as well as deflation in some major categories including vegetables, milk, eggs and bread.