Retail market growth is decelerating because shoppers are holding back, the latest Kantar Worldpanel data shows.

The analyst published its figures for the 12 weeks ending 20 February 2011, which show that the market is subdued. Overall market growth slowed slightly this period to 3.9 per cent compared to 4.2 per cent last month. However, both Sainsbury’s at 5.2 per cent and Morrisons at 4.5 per cent outperformed, growing ahead of the market.

Sainsbury’s market share has grown 0.2 percentage points on a year ago to 16.5 per cent, which continues a strong run gaining share every month since March 2009. Morrisons maintains its 12.3 per cent market share from the same period last year. Tesco and Asda performed slightly behind the market, with share now standing at 30.3 per cent and 16.9 per cent respectively.

Fraser McKevitt, retail analyst at Kantar Worldpanel, said: “Waitrose followed the market trend of slightly slower growth this period, but still posted increased sales of 6.6 per cent compared to a year ago, taking its market share to 4.4 per cent, the highest ever recorded by the retailer.”

The year has been strong for the discounters so far as both Aldi and Lidl are showing double digit growth, well ahead of their performances in 2010. Aldi holds 3.1 per cent of the market, up from 2.8 per cent last year and Lidl’s share is up 0.2 percentage points to 2.4 per cent.

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