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As of 12:57 20 Aug 2019
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As of 12:57 20 Aug 2019

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Big four supermarkets' sales fall

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Tesco, Sainsbury's, Asda and Morrisons all saw sales drop in the three months to 11 August, according to data from research firm Kantar.

Morrisons recorded the biggest fall of 2.7% followed by Tesco.

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New data shows a decline in market share compared to the three months to 12 August

Fraser McKevitt, head of retail and consumer insight at Kantar, says: “The memory of last year still looms large for retailers and this summer’s comparatively poor weather, combined with low levels of like-for-like price rises, have made growth hard to find for retailers".

In contrast, the German discounters Aldi and Lidl made big gains, with sales up 6.2% and 7.7% respectively.

Mr McKevitt said Lidl was boosted by opening new stores as well as a drive to persuade customers to do their "big shop" at its supermarkets.

He said the average basket spend is now nearly £19, 3% higher than last year, "though still significantly lower than the £22.65 average spend at the big four".

Wincanton wins Morrisons contract

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Wincanton has won a five-year distribution contract from Morrisons supermarket to provide transportation services from three distribution centres to its stores.

It will manage transportation planning and operations from the three locationsand will also be responsible for vehicle maintenance through its fleet management business, Pullman Fleet Services at five Morrisons sites.

Adrian Colman,chief executive of Wincanton, said: "This significant new contract with Morrisons further underlines our position as a leading logistics provider in the grocery retail market".

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The FTSE 100 is trading around 10 points lower at 7,357.35.

But plumbing products company Ferguson is up over 5% after Nelson Peltz's Trian Fund Management bought nearly 6% of the business.

Among the other gainers are packaging company DS Smith, which has published results, and Morrisons, which has announced it has expanded its same-day delivery service for groceries with Amazon to Glasgow, Newcastle, Liverpool, Sheffield and Portsmouth.

Housebuilder Persimmon is leading the fallers, down 6%, after going ex-dividend.

It also comes after a report from the National Audit Office (NAO) found almost two-thirds of homebuyers who used the government's Help to Buy scheme could have bought a home without it.

Discounters challenge Big Four supermarkets

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The UK's big four supermarkets all lost market share in the 12 weeks to 19 May, market research company Kantar says, as discounters gained ground.

Tesco's share fell to 27.3% from 27.7% a year ago, while Sainsbury's and Asda had equal shares of 15.2%, after sales fell by 1.7% and 0.2% respectively.

Sales at Morrisons fell 0.4%, giving it a share of 10.4%.

Like-for-like sales were unchanged at leader Tesco and fell at Sainsbury's, Asda and Morrisons.

German discounters Aldi and Lidl continued to record strong growth, with sales up 11.1% and 8.5% respectively, giving them a record combined market share of 13.8%.

Sales at Ocado, Iceland, and Waitrose were also up on a year ago.

Morrisons 'robust'


Supermarket group Morrisons says its retail sales performance was "again robust".

It says like-for-like sales, which strip out new store openings, were positive in the first quarter for the fourth consecutive year "despite political and economic uncertainty continuing to impact consumer confidence".

Sales during Easter period were up 1.7% on last year and 3.4% on a two-year basis.

For the 13 weeks to 5 May, group like-for-like sales excluding fuel were up 2.3% and including fuel were up 2.7%.

It says it expects "the market to remain competitive and challenging" and in the second quarter will annualise last year's favourable summer weather and the World Cup.