DISCOUNTERS SET MORE RECORDS (PLUS AN UPDATE ON GROCERY PRICE INFLATION)

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11.11.2008 UK

Ed Garner, Director of Research, TNS Worldpanel, comments:

TNS MARKET RESEARCH - ED GARNER

The latest TNS Worldpanel grocery market share figures, published today for the 12 weeks ending 2nd November 2008 underline the way in which the economic downturn is impacting grocery shares.  Put simply, retailers with a strong price positioning are continuing to benefit whereas the premium end of the market is clearly under increasing pressure. 

Waitrose has seen its growth rate fall back progressively for the last 8 reporting periods and is now standing at 1.3% year-on-year growth.  This is in very stark contrast to the Discounters where growth continues to power ahead.  The Total Discounter sector (Aldi, Lidl and Netto) now stands at a record 6.2% market share for the 12 weeks ending 2nd November 2008 and Aldi’s year-on-year growth has hit a record 23.9%.

For the major outlets, the pace continues to be set by Asda and Morrisons which are both out-performing the market with growth rates of 9.0% and 9.4% respectively. 

Pressure on the Tesco share continues with a year-on-year drop of 0.4 share points but the Sainsbury’s performance is surprisingly robust with share virtually unchanged in the context of a market increasingly driven by value-based messages.

An update on inflation

As we predicted last period, grocery price inflation has started to fall back and the figure for the 12 week-ending period 2nd November 2008 has dropped to 8.9% from 9.3% last time.

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.

12 Weeks to 04 November 2007 12 Weeks to 02 November 2008 change
£000s %   ** £000s %   ** %
Total Till Roll 26,788,715 27,847,032 4.0
 Total Grocers 18,896,836 100.0% 20,150,879 100.0% 6.6
  Total Multiples 17,571,900 93.0% 18,814,656 93.4% 7.1
    Tesco 5,911,966 31.3% 6,234,051 30.9% 5.4
    Asda 3,161,674 16.7% 3,447,163 17.1% 9.0
    Sainsbury's 3,020,072 16.0% 3,200,392 15.9% 6.0
    Morrisons 2,107,563 11.2% 2,305,019 11.4% 9.4
    Somerfield 785,290 4.2% 782,966 3.9% -0.3
    Waitrose 750,788 4.0% 760,250 3.8% 1.3
    Iceland 313,026 1.7% 347,266 1.7% 10.9
    Netto 155,170 0.8% 161,300 0.8% 4.0
    Lidl 424,416 2.2% 471,205 2.3% 11.0
    Aldi 493,687 2.6% 611,572 3.0% 23.9
    Farm Foods 88,966 0.5% 108,886 0.5% 22.4
    Other Freezer Centres 43,067 0.2% 48,834 0.2% 13.4
    Other Multiples 316,215 1.7% 335,752 1.7% 6.2
   Total Coops 823,978 4.4% 840,465 4.2% 2.0
   Total Independents 500,958 2.7% 495,758 2.5% -1.0
    Total Symbols 181,771 1.0% 173,772 0.9% -4.4
    Other Independents 319,188 1.7% 321,986 1.6% 0.9

** = Percentage Share of Total Grocers

- ends -

Note to editor

These findings are based on TNS Worldpanel data for the 12 weeks to 11th November 2008. TNS Worldpanel monitors the household grocery purchasing habits of 25,000 demographically representative households in Great Britain. All data discussed in the above announcement is based on the value of items being bought by these consumers, TNS will only support data that is published in the context we have presented it and our own interpretation of these findings. We cannot be held responsible for any other interpretation of these findings.

For further information, please contact:
Melanie Haberstroh, TNS
Tel: 0208 967 2168
Melanie.haberstroh@tns-global.com

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