UK grocery outperforms retail sectors

Ed Garner: defensive nature of the grocery market

The UK grocery market continues to outshine other retail sectors, according to the latest TNS market share data for the 12 weeks ending 28 December 2008.

“The figures confirm the hugely defensive nature of the grocery market,” said Ed Garner, director of research at TNS Worldpanel.

“Naturally, competition remains fierce but at least the top-line growth of 6% year-on-year shines out against the wreckage of other retail sectors.”

Tesco is still under pressure, however, with a drop in share from 31.3% a year ago to 30.7%.

Asda and Morrisons are continuing to trade well, recording growths of 7.2% and 9.7% respectively.

As both retailers outperform the total grocery market, they are benefiting from an increase in market share – 16.9% for Asda and a record 11.9% for Morrisons.

Sainsbury’s share is holding firm in spite of pressure on premium retailers, which has caused a 3.9% to 3.7% share fall at Waitrose.

According to Garner, Sainsbury’s Basics range is helping the supermarket maintain a balance between premium and value sectors.

The current trading climate is fueling strong growth at the discounters and freezer centres with Aldi taking a record 3.2% market share.

Despite the general downturn, comparing the figures for the four weeks ending 28 December 2008 with the previous four weeks ending 30 November 2008, shows shoppers still increased their spending at Christmas. Both Sainsbury’s and Waitrose outperformed the market during this period, maintaining the tradition for premium private labels to sell more strongly than their value-based counterparts at this time of year.