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UK Grocery Market Beats Inflation Again

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UK Grocery Market Beats Inflation Again

UK Grocery Market Beats Inflation Again
September 13
11:26 2012

The latest UK grocery share figures from Kantar Worldpanel for the 12 weeks ending 2 September show the grocery market growing at 3.3%. This is above the Kantar Worldpanel inflation measure of 2.9%.

Edward Garner, director at Kantar Worldpanel, explains: “Despite ongoing pressures, things seem to be looking up in the grocery market and shoppers are not having to trade down to the same extent as they have done over the past year.”

Among the big four, Tesco’s share has dropped from 30.9% a year ago to 30.8% – a relatively small decline compared with most of 2012 and evidence of some success in its fight-back. Although Asda outperforms the market with growth of 4.5%, this is now easing back as the effect of the Netto acquisition falls out of the year-on-year comparisons.

Edward Garner comments: “Sainsbury’s maintains its robust run and beats the market with 3.8% growth. This is part of a longer-term trend which has seen the retailer continue to grow its share for the past nine years. The high-profile Paralympics sponsorship will no doubt provide further support but this won’t be fully seen in the figures until next month.”

He adds: “The pressure on Morrisons continues with its share slipping from 11.7% a year ago to 11.5%. However, this is to some extent inevitable, as the retailer presently offers no online ordering and currently only a small number of ‘M Local’ convenience outlets – two areas which are currently major contributors to the growth of its three main competitors.”

Outside of the big four, Aldi continues to be the star performer and holds on to its all-time record share with growth of 26.6%. This is driven mainly by dramatic growth in spend levels of existing customers – up 36% over the past two years – rather than an increased number of shoppers.

According to Kantar Worldpanel, grocery inflation stands at 2.9% for the 12 week period ending 2 September 2012. This continues the downward trend from the recent peak of 6.2% for November 2011. However, this measure may have bottomed-out with poor grain harvests driving inflationary spikes going forward.

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