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Tesco grocery share slides as market stays resilient


Leading supermarket Tesco has continued to see its market share drop with customers favouring discount stores and upmarket offerings, as the chasm between the comfortable and the cash-strapped becomes more pronounced.

Tesco’s market share decreased to 30.4 per cent for the 12 weeks to September 4th 2011, down 0.1 per cent on last month and 0.4 per cent on the same period last year.

Figures published by Kantar Worldpanel today reveal that Aldi’s market share has increased by 0.6 per cent year-on-year in the month and now stands at 3.5 per cent.

At the other end of the scale Waitrose has grown its market share to 4.3 per cent after strong trading, highlighting the so called “two nations” issue affecting the grocery sector.

Martin Whittingham, Director at Kantar Worldpanel, commented: “The hard discounters of Aldi and Lidl continue to maintain their double digit growth with a collective six per cent share of the grocery market.

“Waitrose, on the other end of the price scale, has achieved growth for the fifth consecutive period in the range eight to nine per cent showing that the ‘two nations’ split remains an ongoing theme.”

Aldi also posted impressive sales results, with a total sales increase of 25.6 per cent year-on-year, emphasising it’s strengthening position within UK grocery.

Morrisons once again reported the strongest total sales increase of ‘the big four’, reporting a growth of 5.3 per cent, with competitor Sainsbury’s close behind with a total sales increase of 4.8 per cent.

Kantar pointed to the continuing resilience of the sector, as the market grew at 4.5 per cent per year despite a grocery price inflation rate of 5.3 per cent.

This is an rise on the 5.2 per cent inflation rate reported last period, though remains well below the levels of over nine per cent witnessed during the 2008 recession.

Whittingham added: “The grocery market continues to deliver solid growth helped by inflation.

“Consumers are managing their budget by making more shopping trips but buying fewer items on each outing.

“These changes are at the margin but illustrate how shoppers are trying to cope with the increasing pressures on their household budget.”

Published on Tuesday 13 September by Editorial Assistant

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