Sainsbury’s and Asda continue to record a higher growth rate than Tesco, according to the latest grocery market share figures released by retail analyst TNS Worldpanel.

For the 12 weeks ending June 17 2007, the recently emerging pattern of Sainsbury’s and Asda outstripping Tesco in terms of growth was upheld. “Because of its size, the actual cash growth - the amount of money taken at the main tills - for Tesco continues to dominate all other retailers, but this emerging trend is evidence that there is healthy competition operating in the grocery market,” commented TNS research director Edward Garner.

“It is also worth noting that the independent sector may be finding its niche after decades of pressure from the multiples - its share is stable and the growth rate of eight per cent is ahead of the market and the highest seen in recent years.”

Morrisons continues to be stable, with the fourteenth successive period of year-on-year growth, although TNS explains that this needs to strengthen before the retailer can see share increases comparable to the other retailers in the big four.

“Elsewhere, as Kwik Save awaits an administration hearing, its share has all but ceased to exist in the wake of the closure of 82 of its stores,” said Garner. “The Kwik Save share decline is now dropping out of the year-on-year comparisons, and this will make growth harder to find for competing retailers in the latter part of the year.

“Very recent speculation of a slowdown in consumer spend on groceries across the board is yet to be reflected in these figures, which relate to the past three months of trading. However, we will need will need to watch market shifts closely to assess whether the reports are simply based on a seasonal glitch or a more serious long-term change in consumer spending habits.”

The TNS findings are based on the household grocery purchasing habits of 25,000 demographically representative households in the UK.

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