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Sainsbury's grows market share
Archived article dated Wednesday April 29th 2009
The grocery sector has proved its resilience to the economic downturn by achieving a year-on-year growth rate of 6.2 per cent in the 12 weeks to 19 April, according to the latest figures from TNS Worldpanel. Sainsbury's is achieving the fastest growth, taking market share at the expense of Tesco, according to the figures.
“ As before this growth is below our measure of grocery price inflation as shoppers seek to control their expenditure, either by shopping around, or, more significantly, by switching to lower priced products. This is being actively encouraged by some retailers with “Switch and Save” type promotions,” says TNS Worldpanel director Ed Garner.
Sainsbury's has achieved the strongest growth among the top four UK supermarkets, with a growth rate of 8.1 per cent meaning a 0.2 per increase in market share to 16.3 per cent. Garner credits some aggressive promotions in the run-up to Easter, while retaining an ethical stance, for the performance.
Both Asda and Morrisons have grown ahead of the market and lifted their shares by 0.3 and 0.1 points respectively, while Tesco has seen a market share drop of 0.5 per cent. However, Tesco's growth rate of 4.6% still translates into market leading cash growth because of its size.
Discounters Aldi and Lidl are still delivering double digit growth of 13.6% and 12.3% respectively but the expansion of the sector has slowed from the highs of last year. Including Netto the Discount sector holds 6.0% of the Grocery Market, up from 5.7% a year ago.
“It is worth noting that Waitrose has returned to growth, albeit behind the market. Possibly a sign that shoppers' panic response to the recession is being replaced by a sense of proportion, helped by promotions and the introduction of the 'Essentials' range,” says Garner.
Grocery price inflation remains high, at 9 per cent for the 12 week-ending period 19 April, according to TNS. The figure is based on over 75,000 identical products compared year-on-year in the proportions purchased by British shoppers. This is a 'pure' inflation measure in that shopping behaviour is held constant between the two comparison periods - shoppers are likely to achieve a lower personal inflation rate as they trade down or seek out more offers.
Tagged as: TNS | Sainsbury's | Tesco | Asda | Morrisons | Aldi | Lidl | Netto | Waitrose
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