UK: "Clear price message" driving growth - TNS
By just-food.com | 20 August 2008
UK retailers with a "clear price message" are enjoying the strongest sales in the market, according to the latest data released by research analysts TNS.
The figures, released yesterday (19 August), showed discounters Aldi and Lidl are continuing to see double-digit sales growth, while among the so-called "Big Four", Asda and Morrisons gained share.
Aldi sales were up 19.8% during the 12 weeks to 10 August; rival Lidl saw sales rise 12.3%. Asda, the UK's second-largest retailer, enjoyed sales growth of 8.5%, while Morrisons increased sales by 9.4%.
Tesco and Sainsbury's, meanwhile, saw sales rise - but slower than the UK grocery sector as a whole, TNS said. Tesco's sales were up 6.5%, while Sainsbury's saw sales climb 5.3%. Total grocery sales were up 7.2%, thanks, TNS said, to inflation, with volumes "effectively static".
Ed Garner, director of research at TNS, noted Aldi and Lidl's "strong growth" and Aldi's record market share of 3%. However, he said Aldi's growth is being "entirely driven" by new stores and new shoppers.
"Spend levels for existing shoppers remain unchanged and quite low compared to the top four," Garner said, pointing to a typical monthly spend per household of GBP45 (US$83.51) at Aldi, compared to GBP126 at Tesco.
Garner added: "Several commentators have stated that 'the middle classes are flocking to the discounters'. In fact, new shoppers are predominantly younger households with children, which is more logical - their budgets will have come under strongest pressure."
Sectors: Baby food, Bakery, Chilled foods, Commodities & ingredients, Confectionery, Dairy, Fresh produce, Meat & poultry, Natural & organic, Retail, Seafood, Snacks
Companies: Aldi, Lidl, Asda, Morrisons, Tesco, Sainsbury’s
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There is currently 1 comment on this article
At last, unbiased data and confirmation of what I have screaming from the rooftops for weeks now regarding the market share gains made by the discounters.
The loquacious Mr. Foley of Aldi has been claiming that half his shoppers are from the middle classes. Fans of my blogs will know that I have disagreed strongly with his 'data'. Indeed, I have suggested that it was pure propaganda. Now TNS confirms that the "new shoppers are predominantly younger households with children, which is more logical".
Yes, much more logical. Mr. Foley should also be aware that families with young children do not stay families with young children for ever... And this means that the share gains will last only as long as the recession or at the latest until these families’ economic circumstances change for the better. Sir Tezza & Co can breathe a sigh of relief... (not that it will stop the price wars).
TheFoodAnalyst.com said at 4:27 pm, August 20, 2008
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