Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Britain's Tesco outperforming rivals, but strike threat grows

Published 07/12/2021, 12:31
Updated 07/12/2021, 18:55
© Reuters. FILE PHOTO: A man looks at products on a shelf inside a Tesco Extra superstore near Manchester, Britain, January 8, 2020. REUTERS/Phil Noble

© Reuters. FILE PHOTO: A man looks at products on a shelf inside a Tesco Extra superstore near Manchester, Britain, January 8, 2020. REUTERS/Phil Noble

LONDON (Reuters) -Shares in Tesco (LON:TSCO) rose on Tuesday after industry data showed Britain's biggest retailer had gained its highest market share since February 2019, though the threat of pre-Christmas strikes has escalated.

The stock closed up 1.3%, extending 2021 gains to 23%, after market researcher Kantar showed Tesco significantly outperformed its main rivals - Sainsbury's, Asda and Morrisons - in the 12 weeks to Nov. 28, winning 0.7 percentage points of market share in the period, its biggest jump since 2007.

While the data showed Tesco leading the pack going into the key Christmas period, a cloud on the horizon is potential strike action that could hit product availability in stores.

Tesco was already facing strikes by Unite union workers at four distribution centres in a dispute over pay.

It is now facing walkouts by more than 5,000 members of the Usdaw union at a further nine depots - Daventry, Peterborough, Hinckley and Lichfield in central England, Goole in northern England, Southampton in southern England, Livingston in Scotland and Magor in Wales.

Usdaw has said members will strike from Dec. 20 to Dec. 24.

Both unions have rejected Tesco's offer of a 4% annual pay increase but are still talking to the retailer.

"We welcome Tesco’s offer of further talks, which start tomorrow, and we will engage positively to seek a resolution to this dispute," said Usdaw National Officer, Joanne McGuinness.

Tesco says it has made a fair pay offer and has plans in place to help to mitigate any impact.

Separately on Tuesday, the GMB union said Asda, Britain's third-biggest supermarket group, is also facing potential strike action over distribution workers pay. A ballot of members closes on Dec. 20.

Asda said the GMB had recently made an additional pay claim on top of a two-year deal agreed in May.

"As our annual pay negotiations have just begun and discussions are ongoing, any talk of industrial action is premature," said a spokesperson.

© Reuters. FILE PHOTO: A man looks at products on a shelf inside a Tesco Extra superstore near Manchester, Britain, January 8, 2020. REUTERS/Phil Noble

British retailers are already grappling with delays in international supply chains that are being compounded by labour shortages in domestic transport and warehousing networks, with a lack of heavy goods vehicle (HGV) drivers particularly acute.

However, both Tesco and Asda have said they are coping well.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.