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Discounter boom tails off

The latest TNS Worldpanel grocery market share figures, published today for the 12 weeks ending 14th June 2009, show this defensive sector continuing to ride out the recession and growing strongly at 6.5%.

GENERAL MERCHANDISE

Discounter boom tails off

There are several signs that shoppers have adopted a more measured approach to the recession and have started to revert to pre-recession behaviour. In p
articular the stellar growth of Aldi and Lidl has tailed off and both outlets are seeing their rate of growth eclipsed this period by Sainsbury's and Morrisons. Additionally, Waitrose has enjoyed a considerable 'bounce' with annual growth reaching 7.0%. Current advertising featuring the launch of the Essentials range is a big contributing factor as well as early conversions of former Somerfield stores.

Whilst Tesco had seen its share under pressure it has posted its highest growth so far this year at 6.2%. This is just a whisker behind the Grocery sector growth so share is virtually unchanged. Asda, Sainsbury's and Morrisons all perform strongly, outgrowing the market and adding share.

The decline of Somerfield (-12.7% year-on-year) may look alarming but it should be remembered that the Competition Commission required them to divest stores following their acquisition by The Co-operative. In future releases we will see the Somerfield share progressively decline as the fascias of the remaining stores convert to The Co-operative livery.

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