UNIVEG Katope UK

TNS figures show 6% final quarter for grocery

19th January 2009

U.K. Grocery market share figures have been released for the final quarter of 2008. The all-important final quarter that includes Christmas continues to show the value-focused retailers performing well, with premium retailers continuing to struggle.

Despite a slight slowing in December the TNS figures for the final 12 weeks of 2008 show that the grocery sector still achieved 6% growth in the period (to 28th December), notably up from the equivalent period a year ago when the growth rate was 4.8%.

Continuing to head the growth stakes amongst the biggest national players, Morrisons remained well ahead of its key competitors showing an implied growth of 9.7% for period, while Asda also sustained its market beating performance on a slightly more restrained 7.2%.

While staying notably ahead of Tesco, compared with the last TNS release Sainsbury's has slowed the most of all the leading four grocers, falling back behind the market on 5.1%; suggestive of quite a weak December performance in particular.

Tesco, remaining at the back of the pack (where it has been since the Autumn) showed implied growth of 4.0%.

Running behind the market, Tesco has slipped in market share terms to 30.7%.


12 Week Market Shares

  12 weeks to 30 December 2007 12 weeks to 28 December 2008
Tesco  31.3% 30.7%
Asda       16.7% 16.9%
Sainsbury's 16.3% 16.2%
Morrisons 11.5% 11.9%
Somerfield 3.7% 3.5%
Waitrose   3.9% 3.7%
Iceland 1.8% 2.0%
Netto  0.7% 0.7%
Lidl    2.3% 2.4%
Aldi     2.7% 3.2%
Farmfoods 0.4% 0.5%
Other Multiples  1.7% 1.7%
Total Co-ops 4.4% 4.2%
Total Independents 2.4% 2.4%

Source: TNS Worldpanel


The shift from trading-up to trading-down remained a key feature of the grocery market in this latest 12 week period.

Despite the influence of Christmas, when consumers traditionally shop for quality more than ever, Waitrose recorded its second negative result in a row, though only -0.1%. A slight recovery in December was not enough to rescue the premium focused retailer from a notably weak November.

In contrast, of course, the value-focused smaller retailers went on making hay, with the influence of the continental discounters stronger than ever in December (while others slowed), lead by Aldi (ahead by a street), showing 25.4% growth over the 12 weeks. Though only inching forwards in terms of share, owing to its size, Aldi has now reached a record of 3.2%; while frozen food specialist Iceland (still tracking in double digits) also reached the landmark of 2.0% share.

Despite the resilience of consumer spending in the grocery sector, changing shopper priorities are providing retailers with an ongoing challenge to keep up with sentiment in 2009. All the key retailers have started with a bang in the New Year with strong value campaigns, proving that competition will see no let up, as they seek to maximise the opportunities now on offer.

Source: IGD

CONTACTS
MAIN RECEPTION
PRODUCT CATEGORIES
OPERATIONS
DEPARTMENTS