Tesco still far ahead despite strong UK competition

WM Circle Logo

By: Wise Marketer Staff |

Posted on November 21, 2007

Tesco still far ahead despite strong UK competition

The UK's grocery market share figures from TNS Worldpanel (as at 4th November 2007) once again show sales through grocers growing at an annual rate of 5% as the market shrugs off gloom over credit, as well as the effect of the strong price discounting seen in August.

For the top four supermarkets, life remains as furiously competitive as ever, the company reports. While Tesco has grown its share over the past year from 31.1% to 31.5%, this growth (0.4 share points) has been gained despite very strong competition from its three nearest competitors. However, one year ago the equivalent Tesco share gain stood at 1.1 share points.

Turning around Whilst Morrisons has seen its share shaved from 11.2% one year ago to 11.1% now, this hides the fact that there may be forthcoming a turnaround in Morrisons' fortunes, based on the most recent trends: On 9th September 2007 its share stood at 10.8%, while in 7th October it was 10.9%, and on 4th November it was 11.1%.

Once again there is a strong showing from Waitrose with the share at record levels. According to TNS, history suggests that this is likely to increase as Christmas approaches.

Continued progress Iceland's recovery also shows no sign of running out of, steam with 9% year-on-year growth. Interestingly, this growth seems to be being driven by the Chilled and Ambient sectors rather than Frozen goods.

These levels of competition are making life harder for other fascias, with particular pressure on the share performance of Somerfield, Co-ops and Independents.

More Info: