Switch and Save Boosts Sainsbury’s Market Share

Sainsbury’s was the star performer of the top four UK grocers in the 12 weeks ending 19 April 2009, according to the latest TNS Worldpanel share data.

It grew by 8.1%, well ahead of the total grocery market growth of 6.2%. As a result, Sainsbury’s share has risen to 16.3% from 16.1% a year ago.

Ed Garner, director, TNS Worldpanel, said Sainsbury’s sales were lifted by its Switch and Save campaign, which encourages shoppers to trade out of brands into own label lines.

“Sainsbury’s fielded some aggressive promotions in the run-up to Easter including ones for its Basics value range,” he said. “At the same time, it has maintained its ethical stance on issues like Fairtrade and free range.”

Both Asda and Morrisons have grown ahead of the market and lifted their shares by 0.3 and 0.1 points respectively, while Tesco has seen a share drop of 0.5 points.

Sainsbury’s: top performer

However, Garner said Tesco’s growth rate of 4.6% still translates into market leading cash growth because of its sheer size.

The discounters, Aldi and Lidl, are still delivering double digit growth of 13.6% and 12.3% respectively but the expansion of the sector has slowed from the highs of last year. Together with Netto, the discount sector has a 6.0% share of the grocery market, up from 5.7% a year ago.

Waitrose has returned to growth in the latest period, albeit behind the market.

“That is possibly a sign that shoppers’ panic response to the recession is being replaced by a sense of proportion, helped by promotions and the introduction of the ‘Essentials’ range,” said Garner.