The latest TNS Worldpanel grocery market share figures, published today for the 12 weeks ending 10th August 2008 are showing the clearest picture yet that retailers with a clear price message are posting the strongest performances.
Total Grocers grew turnover by 7.2% compared with last year which is clearly better than many non-grocery sectors although this apparent buoyancy is largely reflecting inflation with volumes effectively static.
Both Aldi and Lidl show strong growth of 19.8% and 12.3% respectively. In the case of Aldi, this translated into a new record share of 3.0%. It is worth noting that this growth is entirely driven by new stores and new shoppers – spend levels for existing shoppers remain unchanged and quite low compared with the Top 4 (Typical monthly spend per household is £45 for Aldi compared with £126 for Tesco). Also several commentators have stated that “the middle classes are flocking to the discounters”. In fact, new discount shoppers are predominantly younger households with children which is more logical – their budgets will have come under strongest pressure. The Iceland growth of 14.4% is the strongest for several years and reflects its discount message.
For the Top 4, performance continues in line with recent periods: Asda and Morrisons have grown ahead of the market and therefore seen share increases whereas the Tesco and Sainsbury growths of 6.5% and 5.3% respectively are behind the total market.
The Waitrose growth of 4.0% is lower than historical performance and this has caused a small share erosion of 0.1% - perhaps unsurprising given the way low price has dominated the current agenda.
An update on inflation
Price inflation in Grocery increased to 6.8% for the 12 weeks ending July 13th 2008 compared to the same period a year ago. This figure is based on 78,000 identical products compared year-on-year in the proportions purchased by British shoppers and therefore represents the most authoritative figure currently available.
Total Till Roll
Great Britain Consumer Spend
Includes all expenditure through main store tills and excludes petrol & instore concession - to see the data please click here
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Note to editor
These findings are based on TNS Worldpanel data for the 12 weeks to 10th August 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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