Asda outshines competitors as sales for supermarkets stagnate
Asda has outshone its supermarket competitors in the battle for the Diamond Jubilee shopper, figures are expected to reveal this week.
Customers are understood to have responded to its Every Day Low Prices marketing message compared with discounts offered by competitors.
Recent sales figures from the chain’s three big rivals, Tesco, Morrisons and Sainsbury’s, have alerted the markets to an increasingly difficult grocery sector.
Reason to celebrate: Asda outsold all its main supermarket rivals
Until the past 12 months, supermarkets were regarded as well insulated from the consumer downturn.
The market share data released by market researcher Kantar on Tuesday is expected to show Asda led the pack in the four weeks to June 10.
Asda is closely monitored when Kantar issues data because it is the only one of the four biggest grocers, whose combined sales are more than £100billion, that does not issue trading numbers to the London Stock Exchange. It is owned by US retailer Wal-Mart.
Analysts believe that the grocers are now firmly fixed on a fight for market share because sales in the sector are not growing. Volume sales of food are falling because consumers are cutting back on waste and discounts have also helped to pull back inflation.
Last week, Financial Mail revealed that for the first time, Tesco, the largest of the big four supermarkets, and Morrisons are on course to report a drop in profit during their current financial year.
Sources say the most recent indications suggest Asda is taking market share off both. However, they have also warned that Tesco is getting ready for a major fightback this autumn. Meanwhile, with its AGM looming, Tesco faces other concerns.
An obscure pension fund called the Change to Win Investment Group, which works with the pension funds of four major US trade unions, said it plans to table a motion at this year’s meeting on June 29 demanding Tesco set up a separate non-executive board for its US business.
It is understood that the arrangement would make it easier for investors to force the closure of its US arm Fresh & Easy, which continues to perform less well than expected.
It said if the board rejects its proposal it would then ask shareholders to vote against the resolution to receive the report and accounts.
Chief executive Phil Clarke has already dismissed calls to shelve the business. Since its arrival in America in 2007, Tesco has faced battles with unions that have demanded recognition from the company.
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