By Jonathan Davies

Tesco's problems aren't showing any sign of easing off; the troubled supermarket saw sales fall by more than any of the other supermarkets in the last 12 weeks.

Adding to an investigation into a £250m overstatement on its profit forecast and the suspension of four of its executives, Tesco saw sales fall by 4.5% in the last 12 weeks, according to Kantar Worldpanel.

Morrisons was previously the worst performing supermarket chain, but Tesco's sales are now declining three times faster than Morrisons.

Tesco is still the most dominant of all the supermarkets, but saw its market share fall again. It now has a 28.8% share, down from 30.2%. Sainsbury's market share fell 0.4% to 16.2% after a 1.8% drop in sales and Morrisons sales were down 1.3% and saw market share fall from 11.1% to 10.9%.

Of the so-called "big four" supermarkets, Asda was the big winner. It's market share was up 0.8%, cementing itself as the UK's second largest supermarket.

Aldi and Lidl, who are arguably the cause of Tesco's downfall, saw their sales rise by 29.1% and 17.7% respectively. Waitrose, the other supermarket to have faired well in the supermarket price war, saw sales up 4.5%

Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said: "Consumers are currently benefitting from intense price competition between the grocers. For the first time ever we’ve seen the average basket of everyday goods bought today costing exactly the same as it did a year ago.

"With some staple groceries such as vegetables, milk and bread prices are actually falling as the big retailers all compete for a bigger slice of shoppers’ wallets. As a result the grocery market is currently growing by just 0.3%, the lowest level since our market data was first compiled in 1993."

You can email your reactions to editor@freshbusinessthinking.com

Join us on
Follow @freshbusiness