Value Range Boosts Waitrose's Market Growth

September 1, 2009

Essentials, the value private label range launched by Waitrose in March, has boosted the premium grocer’s sales, according to the latest TNS Worldpanel grocery market share figures.

Figures for the 12 weeks ending 9 August 2009 show Waitrose grew by 10.2% and was the top performer in the period, well ahead of the average grocery growth of 5.6%.

Garner: shoppers are not loyal to discounters

Ed Garner, director TNS Worldpanel, said the successful introduction of the Essentials range contributed to the growth along with conversion of stores acquired from the Co-operative following its takeover of Somerfield.

Discounters, meanwhile, have seen their growth cut back.

Aldi’s year-on-year growth of 8.1% and Lidl’s 6.3% increase are still ahead of the market but they are a far cry from the 26% growth Aldi enjoyed at the end of 2008, said Garner.

Garner said TNS data showed new shoppers, attracted to these outlets and their low prices, have largely failed to convert to regular loyal customers.

With regard to the top four, the situation is largely unchanged.

Asda, Sainsbury’s and Morrisons continue to post strong growth, putting pressure on Tesco, which has recorded a small share drop to 31.0% from 31.2% a year ago.

In a fresh counter attack, Tesco has announced plans to double the discount on its Clubcard loyalty card from 1% to 2%.

“Taking the contrasting performances of Waitrose and the discounters together implies that ‘recession panic’ is abating as far as the grocery sector is concerned,” concluded Garner.