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Big four under pressure as Waitrose grows at three times of market average


Figures released by research company Kantar Worldpanel for the 12 weeks ending 7 July 2013 show the big four supermarkets are under pressure as a result of long-term market divergence.

Among the big four, only Sainsbury’s has managed to not lose share in the past year with year-on-year growth of 3.8 per cent. Waitrose, Aldi and Lidl have grown well ahead of the grocery market average and now account for 11.5 per cent of the market, 3.2 percentage points more than they did this time four years ago.

Edward Garner, director at Kantar Worldpanel, comments: “This trend has cut deeply into the available market share for the bigger retailers who now have to compete for a contracting middle ground.”

Lidl has grown its market share to 3.1 per cent, an all-time high for the outlet, while Aldi retains its record 3.6 per cent which it established during the last period. The growth rate at Waitrose remains strong at 10.9 per cent, nearly three times the market average, and means the retailer now accounts for 4.8 per cent of the market.

Number one UK grocer Tesco lost 0.6 per cent of its market share as it continues to feel the implications of the horsemeat scandal.

The latest data also shows that recent price matching promotions from retailers have reduced the amount consumers are shopping around. Garner continues: “Many people feel that they can get the same prices at different retailers. As a result we are seeing an increased focus on quality.

“Both Tesco Finest and Sainsbury’s ‘Taste the Difference’ ranges are now growing strongly and Aldi’s ‘Like Brands only Cheaper’ campaign and Lidl’s ‘Taste Test’ are positioning their private products as direct competitors to major brands.”

Published on Wednesday 17 July by Editorial Assistant

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