Tesco leads UK supermarket pack

Bloomberg

Tesco Plc’s sales growth outpaced its main UK rivals in the last month as the country’s biggest grocer continued its revival in the face of a squeeze on disposable incomes.
Separate reports from researchers Kantar Worldpanel and Nielsen both pointed to a strong month for the market leader, pushing its shares up the most in more than a month.
Tesco sales rose 3 percent in the 12 weeks ended August 13, Kantar said, while Nielsen put the gain at 3.2 percent. Growth exceeded its main competitors as the broader grocery market slowed due to weak sales of barbecue food and ice cream in cooler summer weather.
“Tesco was the clear winner of the Big Four,” HSBC analyst Dave McCarthy said. “It continues to lengthen its lead and its importance to its supply base.”
The data provides a further boost for Tesco CEO Dave Lewis, who is heaping pressure on rivals by using the company’s vast buying power to resist inflationary pressure. Tesco has raised prices less than competitors since Britain’s vote to leave the EU hit the pound, pushing up the cost of imported produce.
Total UK supermarket sales grew 4 percent in the month, boosted by continued strong growth at discounters Aldi and Lidl, Kantar Worldpanel said. The defensive nature of the industry has come to the fore in recent months, as a squeeze on disposable incomes has seen fragile demand for fashion and big ticket items weaken.
“All four of Britain’s biggest grocers managed to grow sales for the fifth consecutive period, a run of collective success not seen since 2013,” Fraser McKevitt, head of retailer and consumer insight at Kantar Worldpanel, said in the report.