29 Apr 2008


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Grocery bucks consumer spending slowdown

industry statistics

Contributors to this article

The grocery retail sector is largely immune to the consumer spending slowdown, suggest the latest market figures from TNS Worldpanel.

Figures for the 12 weeks to 20 April 2008 show the grocery sector growing by 6% year on year.

Edward Garner, director of research, at TNS Worldpanel, said: “This is in increasingly stark contrast to non-grocery which shows decline or is at best static.

“Some of this growth can be accounted for by the well-documented food price inflation, particularly in dairy products, fresh produce and bread, but it is nevertheless evidence that, despite pressure on the household budget, we still have to eat.”

Garner added: “Whilst there is no sign yet of a major shift to price-driven outlets – Waitrose continues to out-perform the market for instance – the two top performers this period are Aldi and Iceland with growths of 17% and 12% respectively.

“Aldi has been one of the major beneficiaries of the Kwik Save demise but this effect has largely run its course so the current performance is impressive.

In the case of Iceland it is interesting to note that it is enjoying strong growth in its fresh and chilled business in addition to its core frozen food.

“Value for money combined with high street convenience is proving attractive to its customers.”

Among the Big Four, Morrisons continued to outpace the market with 9% growth, lifting its share to 11.4% from 11.1% a year ago.

Great Britain Consumer Spend
12 weeks to 20 April 2008

Total grocers £20.35bn +6.2%
Total multiples £18.9bn +6.5%

Tesco £6.3bn +5.5%
Asda £3.4bn +6.8%
Sainsbury's £3.3bn +4.2%
Morrisons £2.3bn +9.2%

Waitrose £799m +7%
Somerfield £746m +3.9%
Iceland £348m +12.2%
Netto £131m +6%
Lidl £459m +7.6%
Aldi £557m +17.4%