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 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

The Credit Crunch 10 Years On: What’s Changed?

For many people, especially the those lucky enough to not have been old enough to be directly affected, the economic downturn of 2007-2009 seems like a distant memory. The first iPhone had launched a mere two months before the recession hit, and since then they’ve rebooted the Spiderman film franchise not once, but twice. But more importantly, has enough time passed for the borrowing/lending market to revert to its old tricks?

Published on 26 Sep 2018 by Jamie Mackenzie Smith

Full Article

The Limitation Act 1980 and Debt Time limits

The majority of credit consumers believe that once a debt has been acquired, that debt will remain until the full balance has been cleared regardless of the length of time passed. This may not be the case though, thanks to a little-known piece of legislation known as the Limitation Act 1980.

Published on 19 Sep 2018 by Erika Bone

Full Article

UK Households 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, mobile phones, car finance, and mortgages – than they are actively depositing into savings accounts.

Published on 3 Sep 2018 by Sam Griffin

Full Article

Wonga Administration: What it Means For You

On Thursday 30th August the payday lender Wonga filed for Administration, following a spike in compensation claims and increased pressure on the payday loans industry. This follows a steady decline in this form of lending since the FCA began introducing stricter regulations 2013 in the name of protecting consumers.

Published on 31 Aug 2018 by Jamie Mackenzie Smith

Full Article

How a Baby Name Can Affect Creditworthiness

A lot of preparation (and usually arguing) goes into choosing a baby name – books, ‘top 100’ lists, place names, family names – the list of possibilities is endless. The trouble is, most parents don’t give much thought to the long-term impact of the name they decide on, beyond checking to make sure it doesn’t sound ridiculous when paired with the last name or that when put into initials it doesn’t spell something unfortunate.

Published on 19 Aug 2018 by Jamie Mackenzie Smith

Full Article

The Advantages & Disadvantages of Store Cards

There are a number of reasons you might take out a store card: whether you’re just waiting in-line at the shop and find out you can save on today’s shopping or they offer the promise of making money in the future, these cards regularly find their way into wallets (or phones via an app). Most big retailers offer their own cards, which allow you to take your purchases home – often with a nice discount applied – without having to part with a penny at the till.

Published on 10 Jul 2018 by Tom Blandford

Full Article

What Happens To Your Credit Report When You Move Country?

Moving from one country to another results in a lot of changes and new things – a new place and culture, new job, new people and in some cases even a new language. However, one thing lots of people do not realise is that you will also be starting afresh when it comes to your Credit Report. Credit Reports and the information they contain are country-specific and do not follow you from one country to another.

Published on 27 Jun 2018 by Kirstie Day

Full Article

What To Do If You’re a Victim of Data Breach

Another day, another high-profile data breach, with the morning news bringing word of another leak of personal information that affects millions of consumers. This time it’s the turn of Dixons Carphone - the company behind PC World, Currys and Carphone Warehouse.

Published on 14 Jun 2018 by Jamie Mackenzie Smith

Full Article


We have loads of great customer reviews