Grocer underlines dominant position
Tesco has more than 30 per cent of the UK grocery market for the first time, according to the latest share figures from TNS.

The number one retailer's share grew to 30.3 per cent in the 12 weeks to June 19, compared with 27.9 per cent a year earlier.

Last week, Tesco underlined its dominant position among the grocers when it revealed that total sales for the 12 weeks to May 21 were up 11.3 per cent, with like-for-like sales up 6.8 per cent in the UK.

Behind Tesco, Sainsbury's continues to close the gap on Asda. Sainsbury's share now stands at 15.9 per cent, compared with 15.6 per cent last year. Asda has slipped from 16.5 per cent to 16.4 per cent.

Sainsbury's chief executive Justin King is starting to turn around the retailer and was encouraged by performance in the first quarter, with like-for-like sales up 1.9 per cent.

Baird retail analyst Paul Smiddy believes Sainsbury's will continue to keep Asda under the cosh. In a note, he said: 'It would appear that Sainsbury's fortunes have bottomed out and Asda is on the slide. Their masters in Bentonville have been unhappy for some time and the pressure to regenerate the sales line is intense. There is a renewed focus on costs, but this is rarely the way to shore up a business's long-term prospects.'

The Morrisons/Safeway share continues to slide, blamed on problems integrating the business and trouble at the top, with a rumbling feud between executive chairman Sir Ken Morrison and non-executive deputy chairman David Jones. Morrisons' share stands at 11.7 per cent, down from 14.1 per cent.