Tesco continues to lose market share to rivals Morrisons and Asda, according to Nielsen data for the 12 weeks to March 21 published today.
Sales in the grocery sector grew at 2.7% year-on-year in the first quarter of 2009 with the grocery multiples faring slightly better (up 4.4%) over the same period (source: Nielsen Scantrack).
Of the big four supermarkets, Morrisons again leads the pack with 6.9% year-on-year sales growth, followed by Asda (up 6.7%).
Tesco continues to lose market share with almost a half percentage point decline to 27.6% for the quarter, with Asda and Morrisons each picking up 0.2 points.
Mike Watkins, senior manager for retailer services at Nielsen, said: “This time last year we were in the run up to an early Easter.
“Once seasonal purchasing kicks in for the coming Easter, we should see improved performances and we expect high single digit growths in food and drink at the multiples over the coming four weeks.
“Shoppers are now well versed with money saving strategies, making the most of price cuts and promotions with many also opting for retailer own-labels, including discount brands, where growths are almost 6%.”
Nielsen figures also show that in an effort to shop wisely, shoppers are continuing to curb the number of times they go shopping for groceries overall, with average number of visits made falling in all major retailers.
Consumers are shopping around as opposed to sticking with their regular retailer and they are also shopping for small amounts more often.
There is a 10% increase in the number of visits for baskets of up to 10 items in the first eight weeks of 2009, according to Nielsen.
The latter trend has benefited the Co-op where shoppers visit on average almost twice a week and visits are up 5% in the last four weeks.
For some retailers, said Nielsen, changing shopping patterns have resulted in record levels of penetration.
Forty percent of the population visited a Sainsbury’s in the four weeks to March 21, its highest-ever figure outside of Christmas 2008.
Tesco also has seen its numbers increase; 63% of households visited a Tesco at least once in the same period, up from 61% this time last year.
Watkins said: “Since the start of the year, Morrisons, Asda and now Sainsbury’s have pulled away from Tesco in terms of sales growths and all are attracting new shoppers.
“However, once in store, picking and choosing the best bargains and overall shopper caution means that – despite food inflation hitting 9% again in February – the amount that the average shopper spent in supermarkets over the last 12 weeks was lower than it was a year ago, Asda and Morrisons being the only exceptions.
“Easter and the upcoming bank holidays will present retailers with an opportunity to build up stronger trade.
“The trick will be converting new and occasional visitors into higher spending shoppers and managing to hang on to them in these fickle times.”
