Tesco continued its rise in the last quarter

Tesco continued its rise in the last quarter

Tesco is expected to announce a 13.2 per cent rise in UK sales, when it releases its trading statement this week.

The 14-week performance will reinforce the chain's position as market leader, as well as the general perception that it is stretching away from its closest rivals on the high street.

Only second-placed Asda appears capable of mounting any challenge to the sales supremacy of Tesco - the incumbent numbers three and four in the rankings, Sainsbury's and Safeway, reported half-year increases below two per cent in the last seven days.

Like-for-like sales at Tesco are forecast to go up by around 6.3 per cent. The acquisition of the T&S chain has laso made a major impact - adding four per cent to Tesco's turnover.

The repositioning of Tesco as an every-day-low-price exponent, along with Asda which coined the strategy in the UK, has made its number one position appear impregnable in the medium term at least.

All eyes in the retail market are on Sainsbury's next move, as it attempts not only to combat the top two, but also the likely price-driven policies that Morrisons would impose on its new stores should it eventually acquire Safeway.

Sainsbury's is expected to move away from its quality-driven approach to a more price-conscious drive next summer, but the market is looking for a cohesive, long-term attempt to win back market share. Price cutting does not sit well with Sainsbury's historical stance, and is seen as a risk by many analysts.

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