Tesco turnaround continues as rivals suffer

Posted by Tom Line in Personal Finance on 13 March 2015 - Tom worked as a Credit Analyst at checkmyfile until 2015

Sales at Tesco grew by 1.1% in the three months to March 1st, the retailer’s strongest sales for 18 months, with its major rivals suffered as a result. Asda, its nearest rival, saw sales drop 2.1% in the same period, the worst performance in the sector along with the Co-operative.

The new boss at the firm, Dave Lewis, immediately stamped his mark on the supermarkets profitability by improving all areas of the business including customer service, profit availability and pricing strategy. Tesco has recently been renegotiating deals with major suppliers in order to pass on savings to its customers.

The country’s biggest retailer now controls 28.7% of the market, down just 0.1% on the year before, reinforcing many analysts view that 2015 will be the year that Tesco resurges.

Asda had previously managed to sustain positive growth while rivals underperformed, however, it blamed the increased use of discount vouchers by its competitors as being the reason for its recent poor performance. Asda believes this tactic to be unsustainable long-term as it eats in to the profits of its competitors.

Head of retail and consumer insight at Kantar, Fraser McKevitt, said, “Asda is really being caught in the crossfire of Tesco’s mini-resurgence. There is not room for all of the big four to grow and so when Tesco’s sales rise the others suffer”.

Of the remaining “Big Four” supermarkets, Sainsbury’s and Morrisons sales fell 0.5% and 0.4% respectively. Both retailers have seen the decline slow in recent months as they battle to keep customers.

The discounters, Aldi and Lidl, have continued their assault on the industry with sales rising 19.3% and 13.6% respectively. Aldi now has a market share of 5% and Lidl 3.5%. Aldi’s growth, however, is showing signs of decelerating as the most recent results for the three months to March 1 are its lowest since June 2011.

At the other end of the scales, upmarket retailer Waitrose saw sales rise by 4.9% as customers take advantage of its price-cutting offers and multi-buy deals.

Why Don’t Millennials Take Out Credit?

As a millennial, it can feel like my generation is besieged with criticisms on a daily basis, and not all of them are entirely fair (though lots are). We are frequently told that as a generation we are entitled, we have it so much easier than our elders and arguably, worst of all: we buy too many avocados. While I don’t buy avocados, I do have access to credit, which makes me a minority among my age group.

Published on 16 May 2018 by Beth Jennings

Full Article

Why Is My Loan Balance Wrong On My Credit Report?

One of the single most important pieces of information to appear on your credit file is the information relating to your credit agreements and how you repay them - with this information lenders can see your borrowing history across the last six years and use it to help them decide whether or not to offer you finance.

Published on 7 May 2018 by George Coburn

Full Article

How long do closed accounts appear on my credit report?

Some people believe that as soon as a credit agreement is settled and closed, it will no longer be reported to the UK’s Credit Reference Agencies and therefore will no longer have an influence on future credit applications. However, this is a popular misconception, one that could affect your ability to get credit if not correctly understood.

Published on 2 May 2018 by Tom Magor

Full Article

How to Save Big in the Bank Holiday Sales

Bank holidays may not guarantee a day of sun-soaked fun, but as is British tradition, we’d probably be quite happy barbecuing in the snow if it came to it. But no matter what your plans are, if you want to grab a bargain, you can use the Bank Holiday sales to save some serious money.

Published on 26 Apr 2018 by Kiah Phillips

Full Article

Should I Buy or Finance an Aston Martin Valkyrie?

We’ve all been there. £3 million burning a hole in your pocket and a track-going version of Aston Martin’s latest hypercar sat in front of you. But as a shrewd, savvy business-type, you know that dropping £3m in one go on a 1,100bhp car could be considered a questionable, perhaps even ‘baller’ move. But what about putting it on finance?

Published on 13 Apr 2018 by Jamie Mackenzie Smith

Full Article

How to Build Credit History Without a Credit Card

When it comes to the best way to build up a credit history, conventional wisdom is to take out a credit card and use it for everyday purchases, while paying it off (on time) at the end of every month. There’s plenty to support this advice too, as a credit card allows you to spend as much or as little as your limit will allow, while building a history in a reasonably short amount of time.

Published on 26 Mar 2018 by Jamie Mackenzie Smith

Full Article

Which Credit Report Information Can Landlords See

Whenever you rent a property, you will be required to pass some checks set by the landlord or letting agent to prove that you will be a good tenant and that you’ll be able to afford to rent the property.

Published on 19 Mar 2018 by Kevin Pearce

Full Article

Do Student Loans Affect My Ability to Get Credit?

For many people, a student loan is the single largest chunk of borrowing they ever take out, second only to a mortgage. With course fees alone now coming to more than £9,000 per year and then the added maintenance loan on top of it, you can easily end up borrowing £40,000 during your studies.

Published on 8 Mar 2018 by Jamie Mackenzie Smith

Full Article

How Far Back Can I get my Credit History?

For your recent payment history information, your credit file has everything you need; that’s why it’s given so much importance by lenders whenever you apply for credit. But if you’re looking for information that’s six years old or more, it’s probably not be the best place to start.

Published on 7 Mar 2018 by Jamie Mackenzie Smith

Full Article

Are Car Insurance Premiums Calculated Fairly?

Recently news stories have emerged alleging that a “John” might be more likely to get a cheaper car insurance quote than a “Mohammed”, and that someone with a Gmail account could be offered a lower premium than someone with a Hotmail email address.

Published on 12 Feb 2018 by Jamie Mackenzie Smith

Full Article
keyboard_arrow_left

keyboard_arrow_right

We have loads of great customer reviews