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Supermarkets ‘ride out the recession’

Supermarkets ‘ride out the recession’

The grocery sector is continuing to ride out the recession growing strongly at 6.5%, according to the latest TNS Worldpanel grocery market share figures, published today for the 12 weeks ending June 14, 2009

There are several signs that shoppers have adopted a more measured approach to the recession and have started to revert to pre-recession behaviour.

In particular the stellar growth of Aldi and Lidl has tailed off and both outlets are seeing their rate of growth eclipsed this period by Sainsbury’s and Morrisons.

Additionally, Waitrose has enjoyed a considerable ‘bounce’ with annual growth reaching 7.0%.  Current advertising featuring the launch of the Essentials range is a big contributing factor as well as early conversions of former Somerfield stores. 

Whilst Tesco had seen its share under pressure it has posted its highest growth so far this year at 6.2%.  This is just a whisker behind the Grocery sector growth so share is virtually unchanged.  Asda, Sainsbury’s and Morrisons all perform strongly, outgrowing the market and adding share. 

“The decline of Somerfield (-12.7% year-on-year) may look alarming but it should be remembered that the Competition Commission required them to divest stores following their acquisition by The Co-operative,” said Ed Garner, Director, TNS Worldpanel.

Meanwhile, grocery price inflation has further decreased since last month and the figure for the 12 week-ending period 14th June 2009 is 7.0%

Said Garner, “This figure is based on over 75,000 identical products compared year-on-year in the proportions purchased by British shoppers and therefore represents the most authoritative figure currently available.

“It is a ‘pure’ inflation measure in that shopping behaviour is held constant between the two comparison periods – shoppers are likely to achieve a lower personal inflation rate as they trade down or seek out more offers.”

AJR
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