UK: "Sustained return" to premium hurting Asda - Kantar
By: just-food.com | 27 April 2010
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Asda is shifting emphasis away from promotions |
Asda is feeling the pressure of a "sustained return" by consumers towards more premium products, the latest data from Kantar Worldpanel claimed today (27 April).
In the 12 weeks to 18 April, Asda grew sales by 2.5% and saw its share of UK grocery sales dip from 17% to 16.9%, Kantar said.
UK grocery sales grew by 3% over the 12 weeks and Kantar said Asda was still "under-performing" the rest of the market after a "disappointing" Christmas.
Edward Garner, communications director for Kantar Worldpanel, said: “The snow was a problem for Asda this winter because shoppers were put off driving to their out-of-town superstores.
"However on top of that we’re also seeing a sustained return to premium buying behaviour, which does not support Asda’s ‘value’ proposition. The Asda management team has acknowledged this and is now focusing its promotional strategy on a return to Every Day Low Prices rather than short-term promotions."
Tesco's sales rose 3.5%, driving an increase in market share from 30.3% a year ago to 30.5%. Sainsbury's sales were up 4.1%, while Morrisons sales climbed 6.6% on the year.
Waitrose sales rose 11.7% but they were boosted by the contribution from former Somerfield stores and new sites throughout the UK.
Aldi, which has seen its share of the UK grocery market eroded in recent months, increased its share from 2.9% to 3%, in part due to the acquisition of 65 new stores.
Sectors: Retail
Companies: Asda, Tesco, Sainsbury’s, Morrisons, Waitrose, Aldi
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UK: "Sustained return" to premium hurting Asda - Kantar
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