Supermarket Wars: Asda In Market Share Slide

Industry figures show a slump in sales at Asda as supermarkets continue to compete fiercely for UK market share.

In the latest update from Kantar Worldpanel, Asda's market share was measured at 16.5% - down from 17.1% a year ago.

That left it level with its biggest rival for the title of the country's second largest chain, Sainsbury's .

Kantar said Asda's sales fell 3.5% in the 12 weeks to 21 June.

Out of the so-called big four chains only Morrisons grew sales, by 0.6%.

Sales fell by 1.3% at both Tesco and Sainsbury’s, taking their market shares down to 28.6% and 16.5% respectively as both continue efforts to cut costs and boost their offerings to counter the challenge posed by hard discounters Aldi and Lidl.

Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said Aldi and Lidl were continuing to take share away from the major chains.

He added: "The two discounters increased their sales by 15.4% and 9.1% respectively.

"Aldi reached a new high with a 5.5% share of the market while Lidl, also showing continued growth, rose to 3.9%.

"Waitrose also grew ahead of the market, with sales increasing by 1.2%, moving to a 5.1% share."

Asda reported its first full-year decline in underlying sales in February, with its chief executive Andy Clarke warning then that the industry must be prepared for two more years of turmoil.

A major problem for the chains has been deflation within the grocery market at a time of heavy promotional activity, which has hit profits.

Kantar measured grocery inflation at -1.7% in the latest 12-week period - meaning shoppers are continuing to pay less for goods than they did a year ago though the rate of decline has eased.