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Discounters eat into Asda’s grocery market share

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Discount supermarkets Aldi and Lidl continued to attract new customers and grow their market share in the 12 weeks to June 12th 2011, with Asda suffering a notable downturn during the period.

Kantar Worldpanel grocery market data released today shows that Aldi and Lidl saw sales grow 17.6 and 17.9 per cent year-on-year respectively, maintaining their record market shares of 3.4 and 2.6 per cent in the process, but Asda’s proportion of the sector slipped 0.4 per cent to 16.3 per cent.

Asda was the only grocer from the so-called ‘big four’ to see market share drop, with Tesco and Morrisons increasing theirs shares slightly and Sainsbury’s remaining the same as the equivalent period in 2010.

What is clear though is that a “two nations” effect continues within the grocery sector, with Kantar’s research showing that Waitrose experienced the highest sales growth after the German discounters, proving that while many consumers are preferring value goods a huge percentage of the UK is still keen to shop upmarket.

Edward Garner, Communications Director at Kantar, commented: “After Aldi and Lidl Waitrose posted the next highest growth at 8.9 per cent.

“Further evidence for the ‘two nations’ trend is demonstrated by double-digit growth of Tesco’s Finest range.”

Explaining further, he added: “The discounters are attracting some new customers but most of their growth is coming from gaining a greater share of the household shopping list.

“Customers are making a main shopping trip to their favourite store and this is then topped up with selective shopping at the discounter – this has been dubbed ‘canny shopping’.”

The overall grocery market grew at 4.7 per year during the 12 weeks but there was a stark difference before and after the royal wedding and Easter period, with growth for the four weeks ending May 15th at 7.8 per cent slumping to 2.5 per cent for the final four weeks of the period in question.

As reported by Nielsen’s Scantrack Grocery Multiples tool last month, a combination of inflation and a high level of promotions by retailers are helping keep grocery sales values up year-on-year – and these appears to be continuing as 2011 draws on.

Kantar’s Garner remarked: “As the household budget remains tight, there is no doubt that many shoppers are adopting coping strategies such as taking advantage of promotional offers or ‘topping up’ at the discounters.

“However, there is no sign of a return to the rapid growth of budget own-label ranges that we saw in 2008.”

Published on Tuesday 21 June by Editorial Assistant

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