As UK consumers try to reduce spending, Tesco has lost ground to discount supermarket chains such as Lidl and Aldi. Last month, Tesco’s market share fell to 30.40%, down from 30.80% for the same period last year.
Tesco’s share of the UK market has dropped in every month so far this year. Sainsbury’s market share remained the same, during the last 12 months, whilst Morrison’s and Asda both increased their market share. In fact Asda’s share of the UK market reached a record high of 17.50%.
Upmarket supermarket chain Waitrose has seen a decline in its market share adding weight to the claim that the recession was driving consumers to the budget supermarkets and discount stores.
With increasing numbers of people becoming unemployed or struggling to make repayments on mortgages, personal loans and credit card debt, it is not surprising that there has been a market swing towards the cheaper outlets. During the last 12 months, there has been an increase in the number of UK consumers seeking IVA advice or for alternative debt solutions.
The top man at Poundland, Jim McCarthy, confirmed that the recession was resulting in more people visiting his stores. He also stated that the company will declare “stunning” numbers for the last financial year, when it releases its figures.