Disappointing week for Tesco

The week is not shaping up too well for retail giant Tesco (TSCO).

Disappointing winter sales meant its share of the UK grocery market dipped below 30% for the first time in nearly seven years.

Research firm Kantar Worldpanel revealed that in the 12 weeks to 22 January, Tesco's share shrank to 29.9% - the lowest since May 2005.

Its latest grocery market data shows that Tesco witnessed a sales growth rate of just 2.1% in the period, while on average the overall market increased by 4.3%.

The grip on the market held by Asda and Sainsbury's (SBRY) was largely unchanged at 17.5% and 16.7% respectively.

Edward Garner, director at Kantar Worldpanel, said: "There is considerable pressure on Tesco."

Of the other big four supermarkets, Asda's market share rose sharply from 16.9% to 17.5% on the back of its rebranding of Netto's stores to the Asda banner.

Morrisons' (MRW) market share edged slightly lower from 12.4% to 12.3%.

The biggest winner, however, was Iceland, where higher sales saw its share of the market jump from 1.9% to 2.1% - its best share for a decade. This will be good news for the company as it searches for a buyer.

The success for low-cost chains spread to Aldi, up from 3.1% to 3.5% and Lidl, up from 2.4% to 2.5%.

Tesco share deal prompts move

Meanwhile, there were red faces at Tesco as Reuters reported that UK chief operating officer (COO) Bob Robbins has been "moved" from his role, three weeks after it was revealed he sold stock ahead of a profit warning that sent the firm's shares plunging.

Robbins sold 50,000 shares at 404.51p on 4 January, making around £202,000 according to a filing published the following day.

Despite being within the permitted window, the sale was viewed with cynicism as it took place eight days before Tesco reported its biggest drop in underlying British sales for decades.

An internal announcement seen by Reuters on Wednesday said Robbins will work directly for group chief executive Philip Clarke "on a number of initiatives".

"As we move closer to the new financial year, I have reflected on the changing needs of the business and I have asked Bob Robbins to change his executive committee accountabilities," said Clarke.

"I would personally like to thank Bob for his contribution and support over the last year. His wealth of experience has improved our store operations and I look forward to working with him on delivering our strong investment plan over the coming year," said Richard Brasher, CEO, Tesco UK.

Robbins will be succeeded as UK COO by Chris Bush, currently chief executive of the firm's business in Thailand.

For more on the food retail giant, read: What next for Tesco?