Grocery shrugs off recession as inflation falls
This is not to imply that all sectors of the High Street will instantly return to pre-recession growth. Rather that food remains a manageable proportion of most household budgets by historical standards and, it could be argued, the grocery sector suffered from an over-reaction at the end of 2008 when Aldi posted year-on-year sales growth of 26% and Waitrose saw a sales decline.
Fast-forward to today and Waitrose is the top performer with a growth rate of 11.2% - the highest since August 2006. Admittedly this will be boosted by the stores acquired from the Co-operative / Somerfield combination but it is hardly a sign of a rush downmarket.
Growth for Aldi and Lidl continues to fall back from 2008 levels with Aldi growing ahead of the market at 8.0% and Lidl just keeping pace with the market growth of 5.2%.
Asda, Sainsbury’s and Morrisons all continue to grow share and have added 1.1 share points between them. It is too early yet to assess the impact of Tesco’s Clubcard 2 within this 12 week period and the Tesco share continues under pressure.
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