Consumers are beginning to loosen the purse strings as competition hots up in the grocery sector in the run up to Christmas.
The latest TNS Worldpanel grocery market share figures for the 12 weeks to 29 November 2009 show a largely buoyant market as the festive season gets under way.
Edward Garner, communications director at TNS Worldpanel, said: “The market is seeing signs that indicate an end to the recessionary buying behaviour that has characterised the last year is imminent.
“Premium ranges – particularly Tesco Finest – are in growth, while the hard discount sector, including Aldi, Lidl and Netto, are stagnant, with no year-on-year share growth. This is in contrast to this time last year, when the discounter revolution was in full swing, and Aldi had just recorded 25% growth.
With grocery price inflation lower than a year ago, TNS said shoppers were now under much less pressure to trade down.
The UK’s largest retailers performed strongly in November as independents lost ground.
Asda, Sainsbury’s and Morrisons continued to grow market share. Morrisons added 0.4 share points compared to November 2008 by growing at nearly twice the market rate to achieve a share of 12.1% – an all-time record.
The Co-operative recorded share increase as Somerfield conversions took effect and
Waitrose posted a 14.8% leap in sales growth.
Tesco held market share of 30.6%, on a par with last year (after periods of share loss throughout 2008 and 2009) despite an aggressive promotional programme, particularly on premium ranges, which might have been expected to depress share through self-imposed price deflation.
