Asda performance and market share has slipped as trends move back towards premium ranges, according to the latest data.
The latest grocery market figures from Kantar Worldpanel, published today for the 12 weeks ending 18 April 2010, highlight the ongoing impact of falling grocery inflation and sustained premium spending in spring, with Asda losing out.
The battle for share of consumers’ wallets is still going strong this month despite a slowdown in growth among the top four retailers. Tesco continues to reap the rewards of its national Clubcard and double points scheme with an increase in market share to 30.5 per cent - up from 30.3 per cent last year.
Sainsbury’s and Morrisons maintain strong performances this month, with both retailers growing faster than the market, and building their market share to 16.4 per cent and 11.8 per cent respectively.
But Asda is under-performing the market, despite launching a major coupon scheme to boost sales in the New Year following a disappointing Christmas. Asda’s year-on-year growth of 2.5 per cent is well behind the growth of the other major retailers and its market share has dipped from 17 per cent to 16.9 per cent.
Edward Garner, communications director for Kantar Worldpanel, said: “The snow was a problem for Asda this winter because shoppers were put off driving to their out-of-town superstores. However, on top of that we are also seeing a sustained return to premium buying behaviour, which does not support Asda’s ‘value’ proposition.
“The Asda management team has acknowledged this and is now focusing its promotional strategy on a return to Every Day Low Prices rather than short-term promotions. The next few months will show whether this brand repositioning has been successful in drawing back shoppers looking for both value and quality.”
Waitrose has maintained its strong run with an increase in market share from 3.8 per cent to 4.1 per cent and impressive year-on-year growth of 11.7 per cent - nearly four times the market average - due to an upturn in premium spending.
This impressive performance is expected to continue thanks to the acquistion of ex-Somerfield stores and new sites on the UK’s high streets and service stations. Likewise, The Co-operative has delivered another strong performance with a 15.3 per cent year-on-year growth as the Somerfield conversions forge ahead.
Among the discounters, Lidl and Netto are still struggling to keep pace with the market, but Aldi has experienced a boost with a five per cent growth and a share increase from 2.9 per cent to three per cent. This can partly be attributed to the acquisition of 65 new stores and a new television advertising campaign which has given the retailer a welcome boost after a difficult winter.
Grocery price inflation has continued its downward trend and the figure for the 12-week period ending 18 April 2010 is 1.4 per cent. The low inflation environment will be reflected in lower average growth for the grocery market.
No comments yet