Morrisons sales growth ahead of the pack
Expanded business on Sainsbury’s heels
Sales growth at Morrisons is outpacing that of its main rivals, as the newly enlarged business drives for sales growth in the wake of the Safeway acquisition.
However, the UK’s number four supermarket operator is being warned that the impact of the Safeway integration will have to be carefully managed if growth is to be sustained.
The latest figures from TNS, which use till roll receipts to gauge supermarkets’ share of the grocery market, show that Morrisons’ sales grew 14 per cent in the 12 weeks to March 28, compared with the same period last year. If it were able to continue that growth rate, the business would be set to overtake Sainsbury’s for the number three spot.
Market leader Tesco grew sales by 11 per cent in the same period, while Asda saw a sales increase of 10 per cent. Sainsbury’s sales increased by just one per cent. Sainsbury’s market share also declined over the same period, down to 15.7 per cent from 16.6 per cent last year. Tesco, Asda and Morrisons all saw their market share increase.
[img r]icelandstorefrontsquare.jpg[/img]Iceland, owned by Big Food Group, saw a dip in market share in the face of a one per cent year-on-years drop fall in sales.
The period covered the takeover by Morrisons of Safeway and the launch of price cuts in larger Safeway stores, the first phase of the complex integration of the two businesses. Safeway saw a three per cent slump in sales and a fall in market share across the three months.
Peter East, retail director of TNS Superpanel, said: “The Safeway business is a much larger entity than Morrisons, which will make the task that much more difficult. Morrisons is reputed for its ‘keep it simple’ culture, and it will be keen to maintain that ethos within the much larger scale business that it is now faced with.”
[b]Share of Grocery Market[/b]:12 weeks to March 28
[L]Tesco 27.3%[/L]
[L]Asda 16.6%[/L]
[L]Sainsbury’s 15.7%[/L]
[L]Morrisons/Safeway 14.6%[/L]
[L]Somerfield/Kwik Save 5.8%[/L]
[L]Co-ops 5.2%[/L]
[L]Waitrose 3.2%[/L]
[L]Aldi 2.1%[/L]
[L]Iceland 2% [/L]
[L]Lidl 1.7%[/L]
[L]Netto 0.6%[/L]
[L]Budgens 0.5%[/L]
[i]Source: TNS[/i]
