Sainsbury’s strengthens in the run-up to Christmas
The latest grocery figures from Kantar Worldpanel, published today for the 12 weeks ending 31 October 2010 show that market growth remains ahead of inflation and there are, as yet, no signs of a return to the trading down we saw at the end of 2008.
Market growth is at 4.0% and Kantar Grocery Price Inflation is at 3.0% – virtually unchanged from last period.
Sainsbury’s continues to be the only top four retailer to build its market share this period with growth well ahead of the market at 6.1%. This is the 21st consecutive period that Sainsbury’s has grown its year-on-year share value.
Edward Garner, Communications Director at Kantar Worldpanel, comments,“The large customer base of the top four retailers means that they must strike a balance between price and quality – low prices alone will not be enough to lure shoppers this Christmas. Sainsbury’s has hit a sweet spot with this balance and this is reflected in its continued growth.”
Both Tesco’s and Morrisons’ market share figures have remained largely consistent this period – close to the market growth baseline – with Tesco holding 30.6% of the market and Morrisons remaining stable at 11.7%. Asda’s market share continues to come under pressure at 17.2% of the market, however there are signs that this negative trend is abating as the share dip is less than in previous periods.
Edward Garner, comments,“The Waitrose growth of 8.6% continues to impress, particularly when set against the growth of 12.3% we saw a year ago.”
The Discounters market share remains largely unchanged, demonstrating the success the top four retailers have had in retaining their customers.
Edward Garner, concludes,“As retailers prepare for the festive season the relaunch of both Asda and Sainsbury’s own-label brands will be major factors influencing Christmas performance. It is also important to note that the share benefits of disposals and conversions to Co-operative, since its take-over of Somerfield, are now coming to an end and it will be interesting to see how the retailer performs going forward.”
Grocery inflation is unchanged this period and the figure for the 12 week ending period 31 October 2010 is 3.0 %. According to Kantar Worldpanel this is evidence that the high level of promotions from retailers is countering the widely-reported commodity price increases.
