Analysis: How have the big four grocers fared in the first quarter?

Tesco

Period: 13 weeks to May 25

Like-for-like growth: Down 1%

Total sales: UK sales up 1%, group sales up 0.7%

Market share: 30.2% (Kantar, 12 weeks to 12 May)

Comparable sales growth: 3.3% (Nielsen, 12 weeks to 26 May)

What Tesco said: “In April, we set out our approach for growth and returns for the group, including a number of appropriate and realistic objectives for the years ahead and we have started the year on track, despite a continued difficult economic environment for consumers. 

“This is notwithstanding our planned work on general merchandise, which has held back sales in the UK, and a small but discernible impact on frozen and chilled convenience food sales due to the customer response to equine DNA being detected in four products,” - Chief executive Philip Clarke

What the analysts said: “While this performance was disappointing and we believe Tesco has lost UK market share, investors need to understand if the shift in sales from hypers and supermarkets to online and convenience is adding to incremental profits. Clothing sales has performed well which would indicate that electrical sales and other non-food categories may have recorded double digital falls.” – Mike Dennis, Cantor Fitzgerald

Asda

Period: 12 weeks to April 14

Like-for-like growth: Up 1.3%

Total sales: Not given

Market share: 17.2% (Kantar)

Comparable sales growth: 1.8% (Nielsen)

What Asda said: “This represents a strong performance in what remains a very tough market. Low prices are who we are and are what drive real loyalty. They are not just a gimmick or an unsustainable or knee-jerk promotion. We have continued to achieve growth on growth by lowering the prices of essentials and investing in technology to make shopping more convenient,” - Chief executive Andy Clarke

Sainsbury’s

Period: 12 weeks to June 8

Like-for-like growth: Up 0.8%

Total sales: Up 3.6%

Market share: 16.8% (Kantar)

Comparable sales growth: 4.9% (Nielsen)

What Sainsbury’s said: “This has been a solid performance in what continues to be a tough consumer environment. During the quarter we lapped some of our strongest performance of last year, culminating in the Queen’s Diamond Jubilee, and have extended our track record to 34 quarters of like-for-like growth,” - Chief executive Justin King

What the analysts said: “While representing the grocer’s weakest like-for-like performance in over three years, when put into context this is another strong update from Sainsbury’s. Like-for-like growth has been delivered against tough comparatives – with the same period in 2012 coinciding with the Jubilee – and, more importantly, against wider market trends, with the grocer continuing to outperform key rivals.” – Joseph Robinson, Conlumino

Morrisons

Period: 13 weeks to May 5

Like-for-like growth: Down 1.8%

Total sales: Up 0.6%

Market share: 11.6% (Kantar)

Comparable sales growth: 1.3% (Nielsen)

What Morrisons said: “We have made a solid start to the year, with our sales performance improving since the last quarter. Our promotions have been more innovative and we are explaining Morrisons’ points of difference more effectively. These efforts were further reinforced by the horse meat scandal, which helped drive increasing customer recognition of Morrisons’ unique supply chain and approach to meat sourcing. They now understand that Morrisons is best placed to sell food that is what it says it is,” - Chief executive Dalton Philips

What the analysts said: “Morrisons continued to under-perform its peers in the first 13-weeks of the 2013/14 financial year. However, looking at the Nielsen data for the four-weeks to the April 27, the relative trading momentum improved to the point that the number four player in the British supermarket scene actually out-performed its Big Four rivals, albeit comparative assisted. We will, therefore, keep an eye on the near-term market share data to see if a demonstrably better course, from a performance perspective, has been entered into by Morrisons,” – Clive Black, Shore Capital