The latest TNS Worldpanel grocery market share figures for the 12 weeks ending December 30, 2007 - covering the crucial Christmas trading period - have put Morrisons in the spotlight, with a very strong performance.
The chain had the highest growth rate of any grocery retailer for the Christmas period and is by far the best recorded for Morrisons since the Safeway takeover.
Its share has risen to 11.4 per cent, from 11.0 per cent a year ago, powered by a year on year growth rate of nine per cent.
Edward Garner, director of research at TNS Worldpanel, said: “The relaunch advertising and a campaign of aggressive promotions have succeeded in attracting an increased number of shoppers to the stores.”
And analyst JP Morgan believes the growth is sustainable. "The rebranding of the store estate has barely started, we believe it will only begin to have a meaningful impact by the middle of 2008 and should help Morrison cycle the tough comps it will have toward the end of the year," it said. "Beyond this date, root-and-branch work on ranging, pricing optimisation, non-food, marketing and other areas can be expected to have a positive effect."
Meanwhile, growth rates for Tesco, Asda and Sainsbury’s effectively match the market figure of five per cent year on year, producing only marginal share changes.
“Nevertheless, this confirms the relatively robust performance of the grocery sector in the face of the pressure on consumer spending which has produced downturns and profit warnings elsewhere on the high street,” Garner said.
Iceland, Lidl and Aldi have all delivered growth ahead of the market, which indicates that a value-based proposition continues to find favour in the absence of Kwik Save, he added.
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