The UK grocery sector is “largely buoyant” in the run up to Christmas, industry analysts TNS Worldpanel claimed this afternoon (8 December) – and consumers are showing signs of gaining in confidence.
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According to TNS data, UK grocery sales rose 4.3% in the 12 weeks to 29 November, a level of growth that was dampened by slowing food inflation, which stood at 2.8%.
However, TNS director Ed Garner said consumers were “under much less pressure to trade down” with food inflation slowing.
Garner said: “The market is seeing several signs that indicate that an end to the recessionary buying behaviour that has characterised the last year is imminent. Premium ranges – particularly Tesco Finest – are in growth, while the hard-discount sector, including Aldi, Lidl and Netto, are stagnant, with no year-on-year share growth.”
TNS data suggested that Morrisons’ share of the UK grocery market hit an all-time high of 12.1% after seeing sales rise 8.5%.
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By GlobalDataSainsbury’s sales climbed 5.8%, giving the UK’s third-largest grocer a market share of 16.1%.
Asda sales rose 6%, taking its share to 17% – up from 16.7% year-on-year. Tesco’s market share stood still at 30.6% after seeing sales rise 4.2%.
Garner said Tesco’s static market share “may seem unremarkable” but he added: “Their aggressive promotional programme, particularly on premium ranges, might have been expected to depress share through self-imposed price deflation.”
