Tesco sets the pace for grocers

Supermarket group Tesco continues to pull away from its grocery competitors, according to latest market share figures from Taylor Nelson Sofres.

The top grocer recorded better growth than any of its rivals, according to year-on-year share data showing a record high for Tesco.

The retailer, run by Sir Terry Leahy, increased its share by 1.1 percentage points year-on-year, to 26.8 per cent according to data for the four weeks to May 25. In contrast, Sainsbury's share slipped by 1 percentage point over the period and now stands at 16.8 per cent.

Citigroup Smith Barney analyst Dave McCarthy said: 'The gap with Sainsbury's in market share is now 10 percentage points. This means Tesco is bigger than Sainsbury's and Safeway combined.'

Asda has continued to close the gap on the number two grocer and increased its market share by 0.9 percentage points to 16.3 per cent. Figures from TNS show that Asda has added three per cent points to its market share in the last three years.

Safeway's portion of the market has decreased by 1 percentage point to 9.4 per cent over the past 12 months, while Morrisons has increased by 0.2 percentage points to stand at 6.2 per cent.

Iceland has overturned its market share decline. Its share has remained flat over the last year, but increased by 0.2 percentage points month-on-month.