Asda has joined Sainsbury’s in increasing its market share further in the midst of Tesco’s continued struggles.
The two closest rivals to the world’s third largest retailer have capitalised on recent failings at the top of the food chain, but Asda insists that the increase in sales is a consequence of its own initiatives, rather than an offset of others losing market share
Chief Executive Andy Clarke has stated that a combination of better promotions, alongside the value of vouchers and coupons, has elevated Asda, and Sainsbury’s, over the past few months.
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Discount prices of essential goods seem to have been a pivotal feature in the recent success of the Walmart-owned grocery store. This is also an area where Tesco have promised to improve in the immediate future. Petrol prices, in particular, have been cut in Asda forecourts, which has proved very popular among the recession-blitzed, fuel enraged British public.
Similarly, the opportunity to cut costs across a larger scale in regards to entire weekly shops is also proving very popular with UK consumers. The voucher trend has hit hard and is another facet of supermarket retail which Tesco are expected to indulge more seriously in. Asda is currently handing out 500,000 vouchers a week.
Sainsbury’s has managed to top that, reaching the full million, not just per week, but each day! This has helped the company’s dramatic soar in the market so far in 2012, and adds to the misery currently being endured by Tesco and Morrisons.
Excluding VAT and petrol, like-for-like sales at Asda rose 2.2 percent, which is yet another improvement on the one percent recorded in the previous quarter. Overall, analysts believe this has shot the store’s market share up to 17.6 percent against the 17 percent it claimed at this time last year. Meanwhile, Tesco has dropped 0.2 percent to 30.7 percent over the same period.
The latest figures have obviously left Clarke optimistic over the future, but he remains cautious over the retail industry in general.
When discussing the plight of British consumers he declared “they are going to watch very closely how they spend their money.”
He was quick to praise his store’s progression, however: “We are listening to customers, responding to customers, and we operate in a world-class market where the customer has an opportunity to make many choices and we are very grateful they are choosing us over others, and the numbers support that.”