Grocery sector 'bitten' by recession as discounters maintain growth

Tuesday, 09 December 2008

Grocery retailers are finding trading difficult during the current economic climate but discounters are still in good shape, according to the latest TNS Worldpanel market share statistics.

In the 12 weeks until 30 November 2008, total grocers saw growth of 6.2%, which is lower than the sector's pure inflation measure, TNS said.

Year-on-year for the period, Waitrose saw a sales dip of 0.7%, and also saw its market share drop from 3.8% to 3.6%.

Annual growth at Tesco stood at 4.3%, lower than the 5.4% posted on last month's figures, and it had a reduced market share of 30.9%.

TNS suggested the drop at Tesco is down to the introduction of its discount range, which the retailer admitted last week has deflated sales.

However, Aldi's year-on-year growth for the period hit 25.4%, and it now has a 3.1% share of the grocery market.

Lidl's share is 2.5%, with sales growth of 10.5%, while Iceland has witnessed a 11.6% growth rate.

Morrisons and Asda appear strong in the face of the recession, the research company added, with growth rates of 10.3% and 7.8% respectively.

Nielsen also revealed today that Waitrose has been hit but said multiples are performing well.

Director of research Ed Garner said: "The next data issue will cover the Christmas trading period and it will be a critical test of consumer confidence to see whether the traditional share uplifts for Sainsbury and Waitrose are maintained."

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

Total Multiples 93.4% +6.6%
Tesco 30.9% +4.3%
Asda 16.8% +7.8%
Sainsbury's 16% +6.1%
Morrisons 11.8% +10.3%
Somerfield 3.7% -1.3%
Waitrose 3.6% -0.7%
Iceland 1.8% +11.6%
Netto 0.8% +3.2%
Lidl 2.4% +10.5%
Aldi 3.1% +25.4%
Total co-ops 4.2% +1.6%
Total independents 2.4% +2.7%
Total symbols 0.8% -0.3%
Other independents 1.6% 4.3%

Source: TNS Worldpanel

Year-on-year sales at independents grew by 2.7%, while they dipped by 0.3% at symbol groups.

Today, the British Retail Consortium said food sales are up despite a difficult November for the whole retail sector.