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UK Insights

Grocery Market Looking Up?

Consumer // Shoppers 12.09.2012

Ed Garner

Director

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Grocery market beats inflation

The latest grocery share figures from Kantar Worldpanel, published today for the 12 weeks ending 2 September, show the grocery market growing at 3.3%. This is above the Kantar Worldpanel inflation measure of 2.9%.

Despite ongoing pressures, things seem to be looking up in the grocery market and shoppers are not having to trade down to the same extent as they have done over the past year.

Key Numbers

  • 3.3% The grocery market growth
  • 36% Increase in spend of Aldi customers over past 2 years
  • 4.5% Asda's growth

Among the big four, Tesco's share has dropped from 30.9% a year ago to 30.8% - a relatively small decline compared with most of 2012 and evidence of some success in its fight-back. Although Asda outperforms the market with growth of 4.5%, this is now easing back as the effect of the Netto acquisition falls out of the year-on-year comparisons.

Sainsbury's maintains its robust run and beats the market with 3.8% growth. This is part of a longer-term trend which has seen the retailer continue to grow its share for the past nine years. The high-profile Paralympics sponsorship will no doubt provide further support but this won't be fully seen in the figures until next month.

The pressure on Morrisons continues with its share slipping from 11.7% a year ago to 11.5%. However, this is to some extent inevitable, as the retailer presently offers no online ordering and currently only a small number of 'M Local' convenience outlets - two areas which are currently major contributors to the growth of its three main competitors.

Outside of the big four, Aldi continues to be the star performer and holds on to its all-time record share with growth of 26.6%. This is driven mainly by dramatic growth in spend levels of existing customers - up 36% over the past two years - rather than an increased number of shoppers.

At the same time, we continue to see the diverse nature of households and their shopping habits through Waitrose's performance. The retailer holds on to its all-time record share of 4.6% and outperforms the market once again with growth of 7.8%.

Source : Kantar Worldpanel

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