UK Grocery Market Still Robust, Says TNS

June 9, 2009

UK grocers are continuing to enjoy strong growth, according to the latest TNS Worldpanel grocery market share data.

Figures for the 12 weeks ending 17 May 2009 show the sector grew by 5.8%. And while growth has slowed from 6.2% in April, as a result of lower grocery inflation, it still represents robust growth.

Morrisons: leading market growth

Among the big four retailers Morrisons leads the way with annual growth of 7.9%, taking its share to 11.6%, up from 11.4% last year.

Sainsbury’s follows with 7.8% growth, increasing its market share to 16.3%, while Asda has recorded 7.2% growth to command a 17.1% market share.

Tesco’s growth has improved slightly since April to 4.7% but it still lags behind the overall market resulting in a share fall to 30.8% compared with 31.1% last year.

Waitrose is showing signs of combating recessionary pressures and its market growth has increased to 4%.

According to Peter East, director, TNS Worldpanel, Waitrose’s growth is still slower than the market but it is an encouraging indication that customers are confident enough to shop at a premium retailer.

“Waitrose will be looking at its increased sales growth as an early vindication of its Essentials range strategy,” said East.

The discount retailers – Aldi, Netto and Lidl – have taken their combined market share up to 6.1%, compared to 5.9% last year. However, their combined growth rate of 9.4% has slowed and is no longer running at twice that of the top four retailers.