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.

How does APR work? – Your questions answered

APR stands for Annual Percentage Rate and is a standard measure that allows you to compare the total cost of credit from different lenders.

Published on 30 Aug 2019 by Andrew Brown

Full Article

Check your Multi Agency Credit Report before the PPI deadline

The PPI deadline is at 11.59pm on Thursday 29 August. After this point, you can no longer submit applications to reclaim any PPI you are owed from lenders. If you’ve not done it, the time is now to check whether you are owed money. If you start your PPI application before the deadline, it’s still possible to reclaim what you’re owed.

Published on 28 Aug 2019 by Andrew Brown

Full Article

How interest rates are calculated

If you’ve ever applied for a form of credit, you may well have discovered to your cost that the advertised APR and the interest rate you’re offered if you are accepted can be very different things.

Published on 14 Jun 2019 by Richard Catlin

Full Article

The Importance of Proving Stability to Lenders

In addition to the key roles that your Credit History and Affordability play in determining whether or not you will be accepted for credit, we regularly talk about the importance of being able to demonstrate your ‘stability’ to potential lenders.

Published on 15 Mar 2019 by Sophie Regester

Full Article

If I Change My Name Can I Still Get Credit?

Legally changing your name is an increasingly popular thing to do in the UK: while getting married or divorced still makes up a large proportion of this, there is a growing trend towards people changing their name following civil partnerships, a change in gender, living in blended families, or simply because they’re seeking a change – the list is long.

Published on 22 Feb 2019 by Tom Magor

Full Article

Which Credit Report Information Can Landlords See

These days whenever you rent a property you may be required to pass checks set by the landlord or letting agent to prove that you will be a good tenant and that you’ll be able to reliably make rent payments to the property on time.

Published on 7 Feb 2019 by Kevin Pearce

Full Article

What Credit Checks Look For When You Switch Energy

As we get deeper into Winter, it’s inevitable that millions of consumers across the UK will end up using more energy and spending more on bills due to the colder weather and long stretches of darkness.

Published on 9 Jan 2019 by Jamie Mackenzie Smith

Full Article

Pros and cons of going paperless

Whether you are environmentally motivated or simply to get a discount for moving your billing online, you might find it makes sense to abandon paper for your business, if you haven’t already.

Published on 7 Dec 2018 by Kevin Pearce

Full Article

How To Get The Best Car Finance Deals

New car sales may have slowed in recent years, with the economy, emissions scandals and Millennials all being cited as the root cause at one point or another. But the number of people choosing to use credit as a means of driving away in a new car continues to rise, according to figures from the Finance & Leasing Association which shows that the new car finance market grew by 15% in July 2018 when compared to the previous year.

Published on 8 Oct 2018 by Kiah Phillips

Full Article

We're Now More Likely To Be Borrowers Than Savers

UK Households are now more likely to be borrowers than savers, with savings at their lowest since 1963, according to a study by the Office for National Statistics. Households are increasingly borrowing more – by taking out loans, car finance, and mortgages – than they are collectively depositing into savings accounts.

Published on 5 Oct 2018 by Sam Griffin

Full Article
keyboard_arrow_left

keyboard_arrow_right

We are rated number 1 for customer service on