Figures out today reveal the UK grocery market remains “robust” with sales growing at more than 5% in the three months to mid-May.
Data from TNS Worldpanel showed the sector growing at 5.8%, with Nielsen figures indicating a 5.1% increase over the 12-week period.
TNS said although the increase was down from the April figure of 6.2%, it still represented “robust growth”.
Morrisons led the way among the ‘big four’ retailers with both TNS and Nielsen showing the supermarket chain grew sales by 7.9%, ahead of Sainsbury’s (up 7.8% according to TNS and up 7.3% according to Nielsen), Asda (up 7.2% and 7.4% respectively) and Tesco (up 4.7% and 4.8% respectively).
TNS and Nielsen said Waitrose was ahead by 4%, with the retailer “showing signs of combating recessionary pressures”.
The performance is said, by TNS, to be an “early vindication” of Waitrose’s “Essentials” budget range strategy.
Discount retailers Aldi, Netto and Lidl, said TNS, have taken their combined market share up to 6.1%, compared to 5.9% last year, but their growth rate of 9.4% has slowed and is no longer twice that of the ‘big four’ retailers.
TNS said grocery price inflation has decreased since last figure and the figure for the 12-week period to May 17 was 8.1%.
Mike Watkins, senior manager of retailer services at Nielsen said: “Shoppers are currently looking for even more promotions with 32% of all sales being goods on offer in the four weeks to May 2009, another record high.
“Typically this time of year it is around 28%.
“Take this benefit away from shoppers and we would probably be looking at headline growths at the multiples some 1% less than the buoyant 5% we have seen since Easter.
“In a recent Nielsen survey, 68% of respondents said they were switching to cheaper grocery brands in order to cut down on living expenses.
“Furthermore, 32% said they intend to continue to cut down on grocery spending in this way after the recession is over.
“This indicates that the need for retailers to show good value for money should now be considered long term, as a fundamental shift in consumer behaviour has taken place over the past months.
“At face value this will be good news for Asda, Tesco and the discounters but it is also an opportunity for all other retailers to get a bigger share of wallet of the recession-struck shopper.”
