J Sainsbury PLC (LON:SBRY) has been overtaken by Asda as the UK’s second largest supermarket after losing market share in the 12 weeks to March 24, according to industry data.
Sainsbury’s, which is in the process of trying to merge with Asda, saw its market share drop 0.5 percentage points (ppts) to 15.3% after sales declined 1.8% over the 12-week period, Kantar Worldpanel said.
Asda’s market share dipped by 0.2 ppts to 15.4% while sales edged up 0.1%.
READ: Sainsbury's and Asda suggest selling up to 150 supermarkets to get CMA approval
Sainsbury’s and Asda are awaiting the final decision from the UK Competition and Market Authority, which is carrying out an in-depth investigation of the deal.
In its initial findings, the CMA suggested it was leaning towards blocking the merger after provisional findings of its investigation raised “extensive competition concerns”.
To alleviate these concerns, the companies have suggested selling up to 150 supermarkets and several convenience stores as well as vowing to cut prices by £1bn each year by the third quarter after completing the merger.
If approved the combined supermarket group would overtake Tesco PLC (LON:TSCO) as the market leader.
Lidl and Aldi continue to challenge Big Four
According to the latest Kantar figures, Tesco’s market share edged down 0.2 ppts to 27.4% as sales rose 0.5%.
Sales at Big-Four rival WM Morrison Supermarkets PLC (LON:MRW) fell 0.1% and its market share declined 0.1 ppt to 10.3%.
The UK’s four largest supermarkets have been losing market share to German discounters Aldi and Lidl.
Aldi’s market share reached a record high of 8.0%, up 0.7ppts, with sales up 10.6%.
Lidl had a 5.6% share of the sector in the period, an increase of 0.3ppts, and sales grew 5.8%.
Ocado's market share reaches new high ahead of M&S tie-up
Meanwhile, online grocer Ocado Group plc (LON:OSC) saw its market share hit a new high of 1.3%, up 0.1ppts, ahead of a tie-up with Marks and Spencer Group PLC (LON:MKS).
READ: M&S set for big rights issue, divi cut to fund online grocery joint venture with Ocado
Overall sales across the industry increased 1.3% but the market grew at the slowest rate since March 2018 due to Mother’s Day and Easter falling outside the reporting period, trimming about 0.5 ppts off the overall growth rate.