Blog: Kantar or Nielsen: who's right?
Dean Best | 14 September 2010
Analysing the UK grocery market is a interesting but complicated task - not least when there is so much debate over consumer confidence, whether we are heading for a double-dip recession and the extent of food inflation affecting the market.
Today (14 September), retail analysts at Kantar Worldpanel and Nielsen issued their latest sales figures for the UK's largest retailers.
Kantar, whose numbers for the 12 weeks to 5 September we reported on here, hinted that the market was seeing "premiumisation", with consumers putting more importance on freshness and quality. The trend, Kantar said, was benefiting the likes of Sainsbury's and Waitrose, while the more value-oriented Asda again saw its share of the UK grocery market fall.
Kantar, meanwhile, argued that discounter retailers "continued to languish behind the market", with only Lidl seeing its share of the market rise.
The message from Kantar was that UK retailers focusing less narrowly on price and more on quality were prospering.
However, a look at the numbers from Nielsen caused a little confusion.
Like Kantar, Nielsen's numbers, for the 12 weeks to 4 September, claimed Asda had lost market share but, in contrast to their Kantar counterparts, Nielsen number-crunchers suggested that, in fact, the discounters were enjoying a buoyant period.
"Along with Iceland, the discount retailers Aldi, Lidl and Netto have growths which are ahead of the top four grocery retailers over the last 12 weeks," Mike Watkins, senior manager for retailer services at Nielsen, argued.
"Increases have been driven by existing customers spending more when in store. All of the top four had fewer shoppers in August but an increased frequency of visit, which suggests the weather, promotion cherry picking and back to school visits have been the key drives over the summer. The competitive landscape is certainly getting tougher in the run up to Christmas."
It is, alas, getting tougher to decipher that competitive landscape in the UK.
Danone completed its US$12.5bn acquisition of WhiteWave Foods this week. The move will roughly double Danone's presence in North America, where WhiteWave is a top four dairy player. ...
Premier Foods plc revealed today (28 March) it has secured a deal with its pension scheme trustees that will see the UK food maker reduce its pension burden....
Hain Celestial, under the scrutiny of the investment community in recent months and facing some challenges in its domestic market, has announced another shuffling of its management pack....
FrieslandCampina, which today served up higher profits but lower sales for 2016, is ready to offload the last non-dairy business owned by the Dutch cooperative giant....
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