Latest figures from TNS Worldpanel show Waitrose’s market share is soaring as the discounters suffer a slowdown.
The figures for the 12 weeks ending August 9 show that Waitrose growth is well ahead of the grocery average, with 10.2 per cent compared to the sector average of 5.6 per cent. TNS attributes the successful performance to the introduction of the retailer’s Essentials range and the completed conversion of stores acquired from the Co-operative takeover of Somerfield.
However, growth at the discounters has been cut back and although year-on-year growth of 8.1 per cent for Aldi and 6.3 per cent for Lidl are still ahead of the market, it is nowhere near the 26 per cent Aldi enjoyed at the end of 2008. The TNS data therefore suggests that new shoppers attracted to these outlets and their low prices have in the main failed to convert to regular loyal customers.
The picture with the big four is largely unchanged. Asda, Sainsbury’s and Morrisons are all exhibiting good growth and are putting pressure on Tesco, which suffered a small drop in the period compared to a year ago, falling from a share of 31.2 per cent of the grocery market to 31 per cent.
TNS Worldpanel director Ed Garner said: “Taking the contrasting performances of Waitrose and the discounters together implies that recession panic is abating as far as the grocery sector is concerned.
“Grocery price inflation has further decreased since last month and the figure for the 12 week-ending period ending August 9 is 5.1 per cent, well below the peak of 9.2 per cent seen in October last year. This fall in inflation is largely a mathematical effect as the inflation spike drops out of the annual comparisons. It is also important to remember that the drop in inflation does not mean that prices are falling, merely rising more slowly.”
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