Tesco market share passes 30%
TESCO'S market share has surpassed 30% for the first time, providing further ammunition for consumer groups who want its dominance curbed.
The supermarket chain, which accounts for £1 in every £8 spent by shoppers, made record profits of £2bn last year. Its sales continue to storm ahead while rivals struggle.
Figures released yesterday show that Tesco's share of the grocery sector rose to 30.3% in the quarter to June, according to TNS Superpanel. This compares to 29.9% in last month's report and 27.9% a year ago.
TNS says: 'The Tesco bulldozer is sweeping ahead and, at present, looks to continue its strong hold on the market.'
It is streets ahead of number two chain Asda, which has seen sales stall in the tough retail climate.
After several years of decline, Sainsbury is recovering some ground and could catch Asda by the end of the year. Bradford-based chain Wm Morrison is still losing share, but this is mainly due to store disposals.
Compared to Tesco's £25bn stock market value Sainsbury looks a minnow at £5.5bn, while Morrisons is valued at just £4.9bn. Tesco is also the only UK food retailer to have made its mark overseas, though Asda's American owner Wal-Mart is a major global player.
Tesco owns 1,779 stores in the UK, employing 250,000 staff. Overseas stores account for 20% of group profits. Independent grocers argue that Tesco should have been barred from buying up hundreds of corner shops to cement its position.
Competition authorities have become increasingly concerned about the carveup of the convenience store sector, but it is too late to overturn previous regulatory decisions.
