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Grocery sales strong as food inflation eases

UK grocery retailers are still seeing robust growth, with a slight tailing off in the rate of growth caused by lower grocery inflation, according to new figures from TNS.

GENERAL MERCHANDISE

Grocery sales strong as food inflation eases

The latest TNS Worldpanel grocery market figures, for the 12 weeks to 17 May, also show that Morrisons, Sainsbury's and Asda are continuing to grow their sales
at a faster rate than market leader Tesco.

Morrisons achieved the greatest annual growth, of 7.9 per cent, to take market share of 11.6 per cent, a 0.2 per cent increase on last year. Sainsbury's and Asda, with with 7.8 per cent and 7.2 per cent growth respectively, also saw market share increase, to 16.3 per cent and 17.1 per cent.

Tesco growth of 4.7 per cent was behind the market, meaning the group lost market share which slipped from 31.1 per cent to 30.8 per cent.

Smaller grocery retailers also saw growth. Discounters Aldi, Netto and Lidl took their combined market share to 6.1 per cent, with a combined growth rate of 9.4 per cent. While still higher than the Big Four companies, this figure is no longer showing a growth rate twice as big as the more established groups. Meanwhile Waitrose saw sales grow by 4 per cent.

However, independent and symbol stores saw sales fall over the period, by a combined figure of 8 per cent.

TNS calculates that grocery price inflation is slowing, to 8.1 per cent for the 12 weeks to 17 May. The figure is based on more than 75,000 identical product comparisons.

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