Tesco market share dips below 30%

Image caption, Kantar Worldpanel said there were mixed fortunes for the big four supermarkets

Tesco has seen its share of the UK grocery market dip below 30% for the first time in nearly seven years, figures have shown.

In the 12 weeks to 22 January 2012, Tesco's share dropped to 29.9%, the lowest since May 2005, research firm Kantar Worldpanel said.

Tesco has described its Christmas trading period as "disappointing", after like-for-like sales fell 2.3%.

In contrast, Sainsbury's and Iceland both gained market share.

Sainsbury's edged up from 16.6% a year ago to 16.7%, its strongest hold since March 2003.

Iceland's share rose from 1.9% to 2.1%, its best share for 10 years.

Price wars

This time last year, Tesco had a 30.5% share of the market.

Of the other big four supermarkets, Asda's share rose sharply from 16.9% to 17.5%, thanks to the conversion of Netto stores to the Asda brand.

Morrisons' share slipped from 12.4% to 12.3%.

The top supermarkets were involved in a price war over the festive period, started by Tesco's 拢500m Big Drop Price campaign which launched in early October. But the company later admitted that its spending on the campaign had not been successful.

Meanwhile, low-cost chains also saw their share of the market grow, with Aldi up from 3.1% to 3.5% and Lidl up from 2.4% to 2.5%.