Asda loses more market share to resilient rivals

Asda fell behind in market share for the fifth consecutive month as it was squeezed by its three main supermarket rivals, figures showed today.

The group, owned by Wal-Mart, saw its share of the sector slip to 16.8% from 16.9% in the latest Kantar Worldpanel grocery market study.

Plunging food price inflation is dragging sales lower for many of the major players, but Asda has been the worst affected.

Its sales fell for the first time in four years with a 0.3% drop in like-for-like revenues for the first quarter of 2010.

Rivals have so far been faring better despite easing sales growth, with Tesco holding on to its market share of 30.6% in the 12 weeks to May 16. Sainsbury's claimed a greater slice of the sector, up from 16.1% to 16.3%, as did Morrisons with a rise to 11.8% from 11.5% a year earlier.

Edward Garner, communications director at Kantar Worldpanel, said Asda's incoming chief executive Andy Clarke had immediate task of reviving sales growth.

"As Andy Clarke takes the helm, there has been much speculation about what the new chief executive will do to turn around Asda's fortunes. We expect him to focus on restoring the clarity of Every Day Low Prices as well as reviewing the implementation of range rationalisation," he said.

Kantar added that Asda's focus on value may be working against the company, with Tesco reporting strong growth of its Finest range and ongoing strength at premium retailer Waitrose. The John Lewis-owned chain made further market share gains, to 4.1% from 3.8%.