The grocery market has seen sharp decline in growth for the 12 weeks ending 13 May.
Figures from Kantar Worldpanel show the market growing at 3.1 per cent, which represents a sharp decrease on the five per cent year-on-year growth reported last period. In the four weeks ending 13 May, the grocery market declined by one per cent.
Ed Garner, director at Kantar Worldpanel said: “On the face of it, the declines in market growth might seem alarming, but there are exceptional factors. Easter and the Royal Wedding helped year-on-year growth soar to a remarkable 7.6 per cent in the four weeks leading up to 15 May, 2011 - a hint of what's to come over the Jubilee weekend. Comparing the current figures with the same period two years ago, the four-week growth stands at 6.5 per cent. This is actually in line with long-term trends and shows 2011 as the anomaly.”
Against this backdrop, retailers might expect to record depressed growth, but the picture is very different at Aldi. The retailer has posted growth of 25.4 per cent to achieve a share of 2.8 per cent - another all-time record. Lidl also holds on to its record 2.8 per cent share from last period, with 11.3 per cent growth, and Waitrose continues to outpace the market with seven per cent growth.
Garner said: “The ongoing strong performances of Aldi and Lidl have led some commentators to believe that consumers are deserting conventional stores for the discount sector. However, a more realistic picture of shopper behaviour shows that many consumers are continuing to do their main shopping trip in their usual store, but spending the remainder of their household budget at the discounters.”
Among the big four, Sainsbury's is broadly in line with market growth at three per cent, while Tesco and Morrisons continue to feel the pressure with 1.9 and 1.2 per cent till roll growth respectively.
Asda remains strong, outstripping market growth of 3.1 per cent with a 6.5 per cent till roll increase, reflecting the addition of Netto stores. Meanwhile, the stubbornly high level of food price inflation means that shoppers continue to feel the squeeze on their household budgets.
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