Tesco share price is lower on the day as data shows a contraction in UK grocery shopping since the coronavirus pandemic began in the UK in February 2020. Grocery sales in the UK have generally fallen and are at near 6-month lows, according to the latest data. This drop is mainly due to the resumption of normal shopping activity as lockdowns are eased.
Reuters reports that industry data released by Kantar indicate that the amounts spent by UK shoppers had been trending downwards since June, falling from 18.8% in that month, from 18.9% to 14.6% in July. Sales had peaked during the lockdown period as panicked shoppers stocked up on more than the usual amounts of their grocery needs.
However, Tesco was reported to have shown a growth of 12.8% during the period under review, trailing behind Morrisons which topped the charts with sales of 16%. It should also be noted that the figures indicate that despite the drop in sales, the figures remain above the pre-pandemic levels.
Technical Outlook for Tesco Share Price
Tesco share price fell 0.17% on the day as the markets absorbed the report. However, the downside appears limited as the company still recorded growth for the period under review, with the price candle also propped up by a support line, located at the 228.0 price level. If price bounces of this line, we could see a renewed move towards the 234.3 price level; a move which had previously run out of steam at 231.4. Above this level, 239.7 beckons.
On the flip side, a breakdown of 228.0 targets the 224.0 support, with 220.2 and 214.0 lining up as potential support levels if price continues the decline.
Tesco Share Price Chart (daily)