Top UK grocers' market shares start sliding
In the UK, the latest TNS Worldpanel grocery market share figures have confirmed the trends recently observed in the country's supermarket sector, with market leaders Tesco and Sainsbury's starting to lose ground in the economic downturn.
According to Edward Garner, director of research for TNS Worldpanel, the country's grocery market continues to grow strongly (having grown 6% year-on-year), although that growth has been helped by food price inflation.
Shift toward better value But, TNS warned, it has now become clear that shoppers' pursuit of value-for money is starting to seriously affect grocer's market shares.
Both Aldi and Lidl have delivered very strong year-on-year growth (21% and 13% respectively) and, in the case of Aldi, this has resulted in a record market share of 2.9%. Similarly, Iceland continued its strong run with 12% growth thanks mainly to its reputation for good value for money.
Top players sliding With regard to the top four supermarkets, both Asda and Morrisons continued to enjoy growth above the market average, with both increasing their market shares.
However, Tesco and Sainsbury's both saw their market share slip slightly as their growth rates (5% and 4% respectively) remained behind the market average of 6%.
The main grocery market shares (up to 15th June 2008) were as follows:
- Tesco (31.2%);
- Asda (16.8%);
- Sainsbury's (15.9%);
- Morrisons (11.4%);
- Waitrose (3.9%);
- Somerfield (3.7%);
- Aldi (2.9%).
Realistic view of inflation TNS also warned that recent media commentary has produced some alarmist figures for the annual rate of increase in food prices, often quoting figures of up to 20%. But, while some prices have increased dramatically, TNS believes that it is actually more relevant to look at the average household shopping basket, which takes account of sales levels and promotions.
As a result, the company's estimate for UK grocery price inflation stood at only 4.6% for the 12 weeks up to 20th April 2008 (based on 78,000 identical products compared year-on-year).