Asda performs well but multiple growth slows, Nielsen says

Wednesday, 12 November 2008

Asda was the big winner in the last few months but sales growth at the big four supermarkets slowed down again, Nielsen said today.

While sales growth at the multiple grocery chains slowed to 5.1% from 5.4% in the 12 weeks to 1 November 2008, the company said, Asda boosted its market share to 15.6%, which is the "strongest momentum" on the sales index.

Compared to the same period last year, sales grew at Asda by 8.7%, the research company revealed.

Tesco's market share was up slightly to 28.1%, Sainsbury's was unchanged on 14.1% and Morrisons grew its share to 10.3%.

The latter supermarket's year-on-year quarterly sales rose 9.1%, Nielsen said.

On TNS Worldpanel's market share report, Asda had a 17.1% share of the market, and quarterly sales grew by 9%.

Nielsen senior manager of retail services Mike Watkins said: "Asda now has the strongest momentum with total till growths in excess of 8% since the end of August.

"Sainsbury growths are looking good 3.4% and compare well to Tesco at 4%, which suggests that the differentiation based on the Sainsbury's Own Label is working well despite significant marketing activity from Tesco to support the launch of the Discount Brands."

As shoppers attracted to Tesco during the current climate are buying cheaper products, Watkins said, the company's till growths are behind Asda's.

He concluded: "Multiples are slowing when they should in fact be accelerating. It's looking like a tough Christmas ahead for food retailers."