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TSCO - Tesco News Story

219.6p 4.4  2.0%

Last Trade - 18/09/20

Consumer Defensives
Large Cap
Market Cap £21.51bn
Enterprise Value £33.86bn
Revenue £64.76bn
Position in Universe 54th / 1807

UPDATE 1-Britain's grocery sales growth slows as lockdown eased

Tue 21st July, 2020 9:34am
* UK grocery sales up 14.6% year-on-year in 4 weeks to July
    * Growth was 18.9% in June report
    * Shoppers starting to return to pre-lockdown habits
    * Morrisons is best performer of big four, gaining market
    * Iceland is standout performer of market

 (Adds details)
    By James Davey
    LONDON, July 21 (Reuters) - Grocery sales in Britain rose
14.6% year-on-year in the four weeks to July 12, slowing from
previous weeks as COVID-19 restrictions were eased to allow
hospitality and leisure outlets to reopen in England, industry
data showed on Tuesday.
    Market researcher Kantar said the growth was down from 18.9%
in last month's report, with the data suggesting shoppers were
cautiously returning to pre-lockdown behaviours.  urn:newsml:reuters.com:*:nL8N2E01B0
    The government allowed pubs, cafes and restaurants in
England to reopen on July 4, giving people an alternative to
eating at home.  urn:newsml:reuters.com:*:nL8N2DZ5BX  urn:newsml:reuters.com:*:nL5N2EB01I
    “As lockdown restrictions are gradually eased and
non-essential retail outlets re-open, some consumers are slowly
resuming their pre-Covid routines and shopping habits," said
Fraser McKevitt, Kantar's head of retail and consumer insight.
    But he said normality was still a long way off. Shopper
visits to supermarkets were still 15% lower and the average
spend per trip was 25.05 pounds ($31.74), 35% more than the same
period last year, as people continue to eat more at home.
    Online sales rose 92%, accounting for 13% of all grocery
sales.  urn:newsml:reuters.com:*:nL5N2EL14Y 
    Of Britain's big four grocers No. 4 Morrisons  MRW.L  was
the best performer over the 12 weeks to July 12 with sales
growth of 17.4% and a market share gain for the first time since
2015. Morrisons shares were up 1.3% at 0817 GMT.
    Market leader Tesco  TSCO.L  achieved growth of 15.1%,
followed by Sainsbury's  SBRY.L  on 13.5%. Walmart  WMT.N  owned
Asda was the laggard again with growth of 11%.  urn:newsml:reuters.com:*:nL5N2ER3JQ
    The big four's growth was dwarfed by Iceland, whose sales
surged 34.1% as shoppers bought more frozen food.  urn:newsml:reuters.com:*:nL8N2DM20D
    German-owned discounters Aldi and Lidl saw sales growth of
13% and 17.3% respectively, though as was the case in last
month's report Aldi's market share did fall.  urn:newsml:reuters.com:*:nL8N2DU3NJ
    Kantar said grocery inflation was 3.6% over the 12 weeks,
with prices rising fastest in markets such as cooking sauces,
fresh bacon  and canned colas while falling in fresh poultry,
butter and bread.
    Market share and sales growth (%)
                  12 wks to     12 wks to     pct change
                  July 12,      July 14,      in sales
                  2020          2019          
 Tesco            26.7          27.1          15.1
 Sainsbury's      14.9          15.3          13.5
 Asda             14.1          14.9          11.0
 Morrisons        10.3          10.2          17.4
 Aldi             7.8           8.1           13.0
 Co-operative     7.2           6.4           30.6
 Lidl             5.9           5.8           17.3
 Waitrose         4.7           5.0           10.9
 Iceland          2.5           2.2           34.1
 Ocado            1.7           1.4           45.5
    Source: Kantar

($1 = 0.7891 pounds)

 (Reporting by James Davey; editing by Sarah Young and Ed
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