Morrisons, Asda, and discounters Lidl and Aldi have continued to gain grocery market share in the UK in the last quarter as a result of rising consumer demand for cheaper groceries.
TNS Worldpanel grocery market share figures, published today (9 December) showed that Morrison, the UK's fourth largest supermarket chain by sales, saw its grocery market share rise to 10.3%.
Iceland, Lidl and Aldi continue to grow on the back of their value positioning and, in the case of Aldi, to set new records of share (3.1%) and year-on-year growth (25.4%).
Tesco suffered a share drop from 31.5% to 30.9% with a growth rate standing at 4.3% - lagging the market rate of 6.2%. Rather than being a serious volume decline of the business, this represents "self-imposed deflation" with their introduction of discount brands to increase their price-competitiveness.
For the first time in recent years Waitrose slipped into negative territory with -0.7% year-on-year growth resulting in a share dip from 3.8% to 3.6% for the 12 weeks ending 30 November.
Given this pressure on premium retailers, TNS said Sainsbury's must be encouraged to see that their growth rate is matching the market meaning that their share of 16% is unchanged year-on-year.
Total Grocers are showing 6.2% growth, which is less than the pure inflation measure for the sector as shoppers seek to continue trading down, both in terms of outlets and in terms of product mix within outlets.
"At least the sector is continuing to show positive year-on-year growth unlike the well-documented tribulations in other retailing sectors - the Non-Grocer Till Roll stands at -4.6% for this period," TNS said today.
Sectors: Retail
Companies: Aldi, Lidl, Morrisons, Asda, Tesco, Waitrose
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Justin King is a miracle worker! Brilliant! And how did he do it? Easy. He decided what were the right things and the long-term, strategically sensible things to do... and did them, despite the sceptics.
What I like is that he has maintained the 'premiumness' of JS at the same time. By contrast, Tesco has 'gone discount' which will prove to be a flawed tactic in the longer-term as it has cheapened its image, I believe.
History will prove King Justin to be greater than Sir Terry.
TheFoodAnalyst.com said at 5:23 pm, December 10, 2008
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