Grocery sales slow to record low

Sales at market leader Tesco fell 4.5 per cent, taking its market share down to 28.8 per cent from 30.2 per cent in the same period last year.

The figures are further bad news for the retailer, which said on Monday that its first-half profit forecast had been overstated by £250m, wiping £2bn off its stock market value. The data from market researcher Kantar Worldpanel showed overall grocery market sales growth of 0.3 per cent year-on-year for the 12 weeks to September. 14 - the lowest level since its data set was first compiled in 1993.

“Consumers are currently benefiting from intense price competition between the grocers,” said Fraser McKevitt, head of retail and consumer insight at Kantar.

“For the first time ever we’ve seen the average basket of everyday goods bought today costing exactly the same as it did a year ago.”

He said prices of some staple groceries such as vegetables, milk and bread were actually falling.

Among the “big four” grocers only Asda achieved a sales rise, up 0.8 per cent, and increased its market share, by 0.1 percentage point to 17.4 per cent.

Kantar said sales at Sainsbury’s and Morrisons fell 1.8 per cent and 1.3 per cent respectively, although Morrisons’ rate of decline has slowed.

German discounters Aldi and Lidl, which have been winning share from the big four, continued their run of strong sales growth, up 29.1 per cent and 17.7 per cent respectively.