UK supermarkets: Morrisons shows strong growth

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By: Wise Marketer Staff |

Posted on June 4, 2007

UK supermarkets: Morrisons shows strong growth

The latest TNS Worldpanel grocery market share figures for the UK provide some heartening news for Morrisons, as its growth rate has continued at the record level of 5% (its highest growth rate since its takeover of Safeway), despite the fact that the chain's new advertising campaign and store revamp programme has not yet begun.

According to Edward Garner, director of research at TNS Worldpanel, the UK supermarket share leaders (based on data compiled on 20th May 2007) stood as follows:

  1. Tesco (31.3%)
  2. Asda (16.7%)
  3. Sainsbury's (16.3%)
  4. Morrisons/Safeway (11.2%)
  5. Somerfield (3.8%)

Market summary Kwik Save has recently announced that it will close one-third of its stores in a battle to secure its future, and its share loss continues with the retailer now representing only 0.2% of the grocery market. The share loss at Kwik Save, however, is larger than the share gains displayed by the discounters (i.e. Aldi, Lidl, and Netto) which suggests to Garner that the UK is unlikely to emulate Germany with a wholesale move to discount shopping.

Asda and Sainsbury continued to provide some healthy competition for Tesco as they both recorded strong growth of 8%, year-on-year. This has resulted in both adding 0.3 share points compared to the same period one year ago.

The Tesco growth rate is marginally lower at 7% but it is still ahead of the market average, lifting the group's market share to 31.3% (compared to 31.1% one year ago).

Somerfield, however, has suffered another turnover drop (4% compared to last year), although the share has held steady during 2007 so far. In the meantime, both Co-op and other independents are generally matching the market growth rate, which remains at 6% year-on-year.

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