Asda has the highest year-on-year growth rate of the top four, according to the latest TNS Worldpanel grocery market share figures, as its low-price positioning pays off.
The TNS figures for the 12 weeks ending February 22, 2009 reveal an 8.8 per cent growth rate for the UK’s second-largest retailer, giving it an all-time record share of 17.3 per cent for the period.
Morrisons is also showing strong growth, with an 8.2 per cent rise, lifting its share from 11.6 per cent to 11.8 per cent.
Ed Garner, director of research at TNS Worldpanel, said: “The latest TNS Worldpanel grocery market share figures continue last month’s strong growth rate of 6.4 per cent. Nevertheless, this remains below grocery price inflation of 8.7 per cent, as shoppers continue to seek lower prices, both in terms of switching outlets and also switching brands within outlets.”
Sainsbury’s sees growth of 5.7 per cent, slightly below the total for the sector, so its share drops slightly by 0.1 per cent. Garner said: “This is explained by self-imposed price deflation as their pricing becomes more aggressive, with Switch & Save and the growth of the Basics range. Nevertheless, their ethical stance on issues like Fairtrade and free range remains a point of differentiation.
“The pressure on the Tesco share continues and increases in sales of the Value range and their discount brands are a contributing factor to price deflation.”
While discounters Aldi, Lidl, Netto continue to shine in the recession, with combined share lifting from 5.5 per cent a year ago to six per cent now, TNS points out that freezer centres are enjoying the double benefit of a low-price reputation together with a renaissance in the frozen food category.
Both Iceland and Farm Foods continue to enjoy double-digit growth and this is bolstered by the growth of 9.1 per cent seen in the total frozen food category for the 12-week period.
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