J Sainsbury PLC (LON:SBRY) is the UK supermarket most under threat from its competitors, according to JP Morgan.
Analysts have been using geospatial analysis to see how stores are 'cannibalising' each other's sales.
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Among the Big 4, Asda has the biggest share of sales cannibalised at 43%, with Sainsbury’s coming second with 37%. However, the latter is most at risk due to a big sales overlap with discounters.
Tesco PLC (LON:TSCO), instead, is the grocer most at risk from discounters because it has a large chunk of revenues coming from their key areas of expansion, such as London.
However, it had the best score of cannibalised shares at only 26%, which analysts found surprising.
WM Morrison Supermarkets PLC (LON:MRW), instead, was in a fairly protected position due to 32% cannibalisation among the Big 4 and 59% sales overlap with discounters.
Shares in Sainsbury’s dipped 1% to 264p, while Tesco and Morrisons were flat at 225.84p and 178.6p respectively on Wednesday morning.