The latest UK grocery market figures from industry analyst Kantar Worldpanel have been published this week, highlighting the ongoing impact of falling inflation and sustained premium spending through the spring.
According to the Kantar study, put together by director Ed Garner and covering the 12-week period to 18 April 2010, an overall slowdown in growth among the top four retailers has not dampened their enthusiasm for grabbing a larger share of the market.
Tesco, the largest retailer in the UK, extended its reach by increasing market share to 30.5 per cent, up from the 30.3 per cent it held during the same period of 2009, driven by its national Clubcard reward card and double points scheme.
Similarly, Sainsbury's and Morrisons held firm with growth at a faster rate than the market as a whole, building market share to 16.4 per cent and 11.8 per cent respectively, Kantar said.
However, Walmart-owned Asda displayed year-on-year growth of 2.5 per cent for the quarter, well behind other major retailers, with market share dropping from 17 per cent to 16.9 per cent year-on-year. This was despite the coupon scheme launched this year to help boost sales after a disappointing Christmas period.
'The snow was a problem for Asda this winter because shoppers were put off driving to their out-of-town superstores,' Mr Garner explained. 'However on top of that we're also seeing a sustained return to premium buying behaviour, which does not support Asda's 'Value' proposition.
'The Asda management has acknowledged this and is now focusing its promotional strategy on a return to Every Day Low Prices rather than short-term promotions,' he added. 'The next few months will show whether this brand repositioning has been successful in drawing back shoppers looking for both value and quality.'
Elsewhere, Waitrose maintained its strong run with a market share increase from 3.8 per cent to 4.1 per cent and growth of 11.7 per cent, while the Cooperative also delivered growth of 15.3 per cent on the same period last year.
Discounter Aldi saw growth of 5 per cent and a market share jump to 3 per cent from 2.9 per cent in 2009, although fellow discounters Lidl and Netto are 'struggling to keep pace with the market', according to Kantar.
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