The grocery sector continues to grow year on year, with strong first-quarter growth which saw Asda and Morrisons emerge on top.

The latest TNS Worldpanel grocery market share figures for the 12 weeks ending March 22 continue to show strong results when compared to March 2008, when figures included Easter seasonal spending, which will occur in April this year.

This growth in consumer spending remains below the grocery price inflation of 9.3 per cent (up from 8.7 per cent four weeks ago due to sterling’s weakness), as shoppers continue to seek to manage the impact of higher prices which are still feeding through year on year in the sector. Shoppers trading down to lower-priced products, especially within the retailers’ own-label ranges, continues to be the main tactic in dealing with this for many consumers.

Asda has re-enforced its position as the low-price choice, gaining a record market share of 17.5 per cent, up 0.4 per cent from last year, with a year-on-year growth rate of 8.5 per cent. Morrisons continued its consistent improvement with a share of 11.8 per cent and growth of 7.2 per cent.

Tesco’s growth rate was marginally behind the sector at 4.3 per cent as its market share slipped back from 30.8 to 30.4 per cent, while Sainsbury’s growth of 5.7 per cent was in line with the grocery sector average, giving them a constant share of 16.1 per cent.

Chris Longbottom, director of TNS Worldpanel, said: “[The] discounters (Aldi, Lidl, Netto) continue to enjoy strong growth, with shopper spending up 13 per cent, giving them a combined share of 5.9 per cent compared to 5.5 per cent last year.

“However, there are some signs of a slowdown in this rate of growth, suggesting that the major multiples are becoming more successful in containing this long-term challenge."

The major multiples continue to hold 92.7 per cent of the grocery market, with The Co-Operative accounting for 4.5 per cent and independents making up the remaining 2.8 per cent.

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