Tesco has dropped market share as Iceland puts in its strongest performance in a decade.
The latest grocery-share figures from Kantar Worldpanel, for the 12 weeks ending 22 January 2012, show Tesco falling in market share from 30.5 per cent during the same period in 2010-11 to 29.9 per cent this year.
Meanwhile, Iceland’s share climbed from 1.9 per cent to 2.1 per cent during the time ringing in nearly £537 million up from just £482m 12 months ago.
The grocery market is growing at 4.2 per cent a year, which remains below the food inflation rate as shoppers continue to seek value for money.
Edward Garner, director at Kantar Worldpanel, said: “There were mixed fortunes among the big four supermarkets this month. The completion of the Netto conversion has led to an all-time record performance for Asda, lifting its share from 16.9 per cent a year ago to 17.5 per cent now. Sainsbury’s has also grown its share to 16.7 per cent, consolidating its strongest hold of the market since March 2003.”
However, Garner believes there is considerable pressure on Tesco, with its growth rate of 2.1 per cent only half the total market average. This has caused its share to fall by 0.6 percentage points.
He added: “Iceland’s 2.1 per cent share is at its highest for 10 years as shoppers continue to manage down their spending. With bids for the chain closing on 31 January, these figures are promising for potential buyers and show the importance of a good value-for-money message in today’s grocery market.”
Aldi and Lidl are continuing their strong run, both increasing their shares to 3.5 per cent and 2.5 per cent respectively. However, the disappearance of Netto means that the size of the total discount sector is relatively unchanged at six per cent.
