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Sainsbury’s grows in subdued grocery market


Sainsbury’s outperformed the overall grocery market in the 12 weeks to February 20th 2011, according to the latest industry data from Kantar Worldpanel.

The third largest grocer in the UK increased its market share by 0.2 per cent year-on-year to 16.5 per cent, growing sales by 5.2 per cent in the process.

In comparison the overall grocery sector saw sales rise 3.9 per cent compared to the same period last year.

Morrisons, which recently announced the £70 million acquisition of online baby products retailer Kiddicare, also outperformed the market during that time, reporting a 4.5 per cent annual hike in trading activity.

Tesco and Asda performed slightly behind the market, and now account for 30.3 and 16.9 per cent of grocery sector sales respectively after both seeing their market share drop by 0.1 per cent.

Asda CEO and President Andy Clarke said last week that the soon-to-be-finalised acquisition of Danish supermarket Netto’s UK stores will help the company keep its position as Britain’s number two grocer in the short term.

Today’s data represents better news Waitrose, which now has a larger market share than ever before. The expansion of its convenience store network in the months ahead, with initiatives such as Little Waitrose, is likely to help the business further grow its influence in the sector during 2011.

Fraser McKevitt, Retail Analyst at Kantar Worldpanel, remarked: “Waitrose followed the market trend of slightly slower growth this period, but still posted increased sales of 6.6 per cent compared to a year ago, taking its market share to 4.4 per cent.”

Doubts over the economic situation in the UK are expected to remain in the coming months, but it is not yet clear how this will affect consumers’ shopping habits.

McKevitt added: “With economic uncertainty increasingly in the news it is no surprise that shoppers are being cautious with their spending.

“However, while the discounters are performing well this is not due to an increase in new shoppers, but rather because their existing customers are spending more with them.

“The majority of people continued to seek value through promotions in the mainstream retailers, rather than trading down to the discounters.”

Published on Tuesday 01 March by Editorial Assistant

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