Tesco has increased its share of the UK grocery sector, according to figures released by TNS today (10 November) – the first rise since the analysts issued its 12-week updates in 2007.
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The company, the UK’s largest grocer, accounted for 30.7% of the country’s food retail sales in the 12 weeks to 1 November – up from 30.6% a year earlier, TNS said.
Tesco’s sales grew by 4.7%, beating the 4.4% seen across the industry as a whole.
TNS director Ed Garner said Tesco’s recent investment in its Clubcard loyalty scheme was paying off – and could help sales during the festive period.
“Tesco will be hoping for added impetus as the latest Clubcard mailout, currently taking place, puts coupons in shoppers’ hands in the run-up to Christmas,” Garner said.
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By GlobalDataThe next three largest UK grocers – Asda, Sainsbury’s and Morrisons – also outperformed the market. Morrisons, which saw sales grow by 8.5%, was the best performer.
“Morrisons again shows the highest growth of the top four as it moves nationwide and consolidates the stores acquired from the aftermath of the Co-operative takeover of Somerfield,” Garner said.
Waitrose saw sales jump 12.3%, while the combined share of the UK market held by discount retailers stayed constant year-on-year, standing at 6.1%.
“The growth spurt enjoyed by the discounters at the end of 2008 has not been maintained,” Garner claimed.
The rate of food inflation slowed during the 12 weeks to 1 November. Prices rose by 3.2%.
“This means that the trading-down effect, which has been a feature of the recession, will now be much reduced,” Garner added.
