Discounters mount further pressure as growth continues

Tuesday, 11 November 2008

Discount retailers and those with strong price positioning are continuing to witness robust growth in the current economic climate, TNS Worldpanel has said.

According to the firm's latest grocery market share figures, Aldi's year-on-year growth was 23.9 in the 12 weeks until 2 November.

Overall, all of the discounters - Aldi, Lidl and Netto - occupy a market share of 6.2%, which is a record.

By comparison, premium retailers are under increasing pressure as consumers' budgets get tighter, TNS said.

Earlier today, the British Retail Consortium-KPMG Retail Sales Monitor found that retailers with discounting tactics are performing best on the market at present.

In the TNS figures, Tesco's market share dipped by 0.4% but sales still grew by 5.4%, while Asda had a market share of 17.1%, Sainsbury's 15.9% and Morrisons 11.4%.

Director of research Ed Garner said: "For the major outlets, the pace continues to be set by Asda and Morrisons which are both out-performing the market with growth rates of 9.0% and 9.4% respectively."

Below is the market share of grocery retailers. Turnover percentage share change is on the right.

Total Multiples 93.4% +7.1%
Tesco 30.9% +5.4%
Asda 17.1% +9.0%
Sainsbury's 15.9% +6.0%
Morrisons 11.4% +9.4%
Somerfield 3.9% -0.3%
Waitrose 3.8% +1.3%
Iceland 1.7% +10.9%
Netto 0.8% +4.0%
Lidl 2.3% +11.0%
Aldi 3.0% +23.9%
Total co-ops 4.2% +2.0%
Total independents 2.5% -1.0%
Total symbols 0.9% -4.4%
Other independents 1.6% +0.9%

Source: TNS Worldpanel

Additionally, year-on-year sales at symbols dipped by 4.4%, while they dipped by 1% at independents.

The trends are similar to those seen on the barometer last month.

Today, TNS also said that Value Own Label products are growing in popularity in the present climate.