Tesco market share drops below 30%

Supermarket giant Tesco saw its share of the grocery market dip below 30% for the first time in nearly seven years as it struggled to compete with low-cost rivals, figures showed yesterday.

Tesco’s drop in market share, to its lowest level since May 2005, came as Sainsbury’s took its strongest hold on the market since March 2003 and Iceland soared to its best share of the market in 10 years.

Tesco, Britain’s biggest supermarket, saw its share fall to 29.9% in the 12 weeks to Jan 12, as it slashed prices in a failed bid to attract more customers.