The UK grocery market is shrugging off the credit crunch gloom and effects of the price discounting seen in August, according to the latest grocery market share figures from TNS Worldpanel.
The results, published yesterday for the 12 weeks ending November 4, once again show sales through grocers growing at an annual rate of five per cent.
“For the top four, life remains as furiously competitive as ever,” said Edward Garner, director of research at TNS Worldpanel. “While Tesco has still grown share over the last year from 31.1 per cent to 31.5 per cent, this growth of 0.4 per cent has been gained in the teeth of strong competition from the next three - a year ago, the equivalent Tesco share increase was 1.1 share points.”
Morrisons has seen its share shaved from 11.2 per cent a year ago to 11.1 per cent now, but according to Garner this hides the fact that Morrisons is actually seeing a turnaround in its fortunes. Its share has risen from 10.8 per cent for the 12 weeks ending September 9, 2007 to 10.9 per cent for the 12 weeks ending October 7. That figure has now risen to 11.1 per cent.
“Any early evidence of Morrisons’ recent repositioning will be eagerly sought,” said Garner.
“Once again there is a strong showing from Waitrose, with the share at record levels, and history tells us this is likely to increase as Christmas approaches.”
Iceland’s recovery is in full swing, with nine per cent year-on-year growth recorded in this latest set of results, and this actually driven by the chilled and ambient sectors rather than frozen.
“Naturally, these levels of competition are making life tough for other fascias, with pressure on the share performance of Somerfield, The Co-op and independents,” added Garner.
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