Premium purse puts pressure on ASDA
The battle for share of consumers’ wallets is still going strong this month despite a slowdown in growth among the top four retailers. Tesco continues to reap the rewards of its national Clubcard and double points scheme with an increase in market share to 30.5% - up from 30.3% last year. Similarly Sainsbury’s and Morrisons maintain strong performances this month with both retailers growing faster than the market, and building their market share to 16.4% and 11.8% respectively.
By contrast, Asda is still under-performing the market despite launching a major coupon scheme to boost sales in the new year following a disappointing Christmas. Asda’s year-on-year growth of 2.5% is well behind the growth of the other major retailers and its market share has dipped from 17.0% to 16.9%.
Edward Garner, Communications Director for Kantar Worldpanel, explains: “The snow was a problem for Asda this winter because shoppers were put off driving to their out-of-town superstores. However on top of that we’re also seeing a sustained return to premium buying behaviour, which does not support Asda’s ‘value’ proposition. The Asda management team has acknowledged this and is now focusing its promotional strategy on a return to Every Day Low Prices rather than short-term promotions. The next few months will show whether this brand repositioning has been successful in drawing back shoppers looking for both value and quality.”
In a reflection of the ongoing premium purchasing trend, Waitrose has maintained its strong run with an increase in market share from 3.8% to 4.1% and a year-on-year growth of a staggering 11.7% - nearly four times the market average. This impressive performance is expected to continue thanks to the acquistion of ex-Somerfield stores and new sites on the UK’s high streets and service stations. Likewise the Cooperative has delivered another sparkling performance with a 15.3% year-on-year growth as the Somerfield conversions forge ahead.
Among the Discounters, Lidl and Netto are still struggling to keep pace with the market but Aldi has experienced a boost with a 5.0% growth and a share increase from 2.9% to 3.0%. This can partly be attributed to the acquisition of 65 new stores and a new television advertising campaign which has given the retailer a welcome boost after a difficult winter.
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