Five questions answered on Tesco’s and Morrisons’ Christmas sales slide

Why did supermarket sales take a hit?

Morrisons and Tesco have reported a fall in their Christmas sales. We answer five questions on both supermarkets’ lacklustre sales.

By how much has Tesco’s and Morrisons’ sales fallen?

In the six weeks to January 5 2014 Morrisons’ like for like sales fell 5.6 per cent, causing its shares to plummet by 7 per cent.

Tesco's like-for-like sales fell by 2.4 per cent over the festive period. It’s shares fell by 4 per cent.

What have the companies attributed these weaker sales to?

Morrisons believe its sales were weak due to a lack of online presence, as well as competition by cut-price shops, such as Lidl and Aldi. The supermarket is set to enter the online shopping market on Friday, when it will launch a trial in Warwickshire, covering parts of the Midlands.

Tesco simply said the fall in sales was due to a "weaker grocery market" in the UK.

What else did the supermarket giants say?

Morrisons said it was "disappointed" by the sales. In a statement the retailer said:

"The difficult market conditions were intensified for Morrisons by the accelerating importance of the online and convenience channels, where Morrisons is currently under-represented, and by targeted couponing which was particularly prevalent in the market this Christmas."

Tesco, which also saw a 0.7 per cent fall in its overseas sales, said its move to open fewer stores in the UK was also behind the sales drop.

Philip Clarke, chief executive at Tesco, said: "Our overseas performance has improved since the third quarter, driven by an improving trend in Europe. This is despite continuing external challenges, including the recent political disruption in Thailand."

What have the experts said?

Will Hedden, sales trader at spread-betting firm IG, told the BBC: "There is the impression that more and more business is going online, and Morrisons has been slow to come into that area.

"Their online offering is going to need to become pretty good, pretty quickly to compete."

While George Osborne took the release of the figures as an opportunity to say they showed that the industry is "very competitive".

"We have to work through the long-term economic plan that is turning Britain around and we need to make sure we get balanced growth across the whole country and we get investments and exports alongside consumer spending,” he told the BBC.

How did the other big supermarkets do over Christmas?

Sainsburys posted its lowest growth figures for nine years prompting the company to scale back its growth forecast for 2014. It reported this week that its sales had increased by just 0.2 per cent in the 14 weeks to January, despite prices rising by some 2.5 per cent.

Waitrose, on the other hand, revealed on Wednesday a 3.1 per cent rise in underlying sales in the five weeks to Christmas Eve. This was boosted by a 33 per cent rise in online grocery sales.

Co-op reported a 1 per cent rise in underlying sales at its grocery stores in the 13 weeks to 4 January.

A Tesco Express on Clapham High Street. Photograph: Getty Images.

Heidi Vella is a features writer for Nridigital.com

Getty
Show Hide image

Let's face it: supporting Spurs is basically a form of charity

Now, for my biggest donation yet . . .

I gazed in awe at the new stadium, the future home of Spurs, wondering where my treasures will go. It is going to be one of the architectural wonders of the modern world (football stadia division), yet at the same time it seems ancient, archaic, a Roman ruin, very much like an amphitheatre I once saw in Croatia. It’s at the stage in a new construction when you can see all the bones and none of the flesh, with huge tiers soaring up into the sky. You can’t tell if it’s going or coming, a past perfect ruin or a perfect future model.

It has been so annoying at White Hart Lane this past year or so, having to walk round walkways and under awnings and dodge fences and hoardings, losing all sense of direction. Millions of pounds were being poured into what appeared to be a hole in the ground. The new stadium will replace part of one end of the present one, which was built in 1898. It has been hard not to be unaware of what’s going on, continually asking ourselves, as we take our seats: did the earth move for you?

Now, at long last, you can see what will be there, when it emerges from the scaffolding in another year. Awesome, of course. And, har, har, it will hold more people than Arsenal’s new home by 1,000 (61,000, as opposed to the puny Emirates, with only 60,000). At each home game, I am thinking about the future, wondering how my treasures will fare: will they be happy there?

No, I don’t mean Harry Kane, Danny Rose and Kyle Walker – local as well as national treasures. Not many Prem teams these days can boast quite as many English persons in their ranks. I mean my treasures, stuff wot I have been collecting these past 50 years.

About ten years ago, I went to a shareholders’ meeting at White Hart Lane when the embryonic plans for the new stadium were being announced. I stood up when questions were called for and asked the chairman, Daniel Levy, about having a museum in the new stadium. I told him that Man United had made £1m the previous year from their museum. Surely Spurs should make room for one in the brave new mega-stadium – to show off our long and proud history, delight the fans and all those interested in football history and make a few bob.

He mumbled something – fluent enough, as he did go to Cambridge – but gave nothing away, like the PM caught at Prime Minister’s Questions with an unexpected question.

But now it is going to happen. The people who are designing the museum are coming from Manchester to look at my treasures. They asked for a list but I said, “No chance.” I must have 2,000 items of Spurs memorabilia. I could be dead by the time I finish listing them. They’ll have to see them, in the flesh, and then they’ll be free to take away whatever they might consider worth having in the new museum.

I’m awfully kind that way, partly because I have always looked on supporting Spurs as a form of charity. You don’t expect any reward. Nor could you expect a great deal of pleasure, these past few decades, and certainly not the other day at Liverpool when they were shite. But you do want to help them, poor things.

I have been downsizing since my wife died, and since we sold our Loweswater house, and I’m now clearing out some of my treasures. I’ve donated a very rare Wordsworth book to Dove Cottage, five letters from Beatrix Potter to the Armitt Library in Ambleside, and handwritten Beatles lyrics to the British Library. If Beckham and I don’t get a knighthood in the next honours list, I will be spitting.

My Spurs stuff includes programmes going back to 1910, plus recent stuff like the Opus book, that monster publication, about the size of a black cab. Limited editions cost £8,000 a copy in 2007. I got mine free, as I did the introduction and loaned them photographs. I will be glad to get rid of it. It’s blocking the light in my room.

Perhaps, depending on what they want, and they might take nothing, I will ask for a small pourboire in return. Two free tickets in the new stadium. For life. Or longer . . . 

Hunter Davies is a journalist, broadcaster and profilic author perhaps best known for writing about the Beatles. He is an ardent Tottenham fan and writes a regular column on football for the New Statesman.

This article first appeared in the 16 February 2017 issue of the New Statesman, The New Times