SAINSBURY’S SHINES (PLUS AN UPDATE ON GROCERY PRICE INFLATION)

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29.04.2009 United Kingdom

Ed Garner, Director, TNS Worldpanel, comments:

    TNS MARKET RESEARCH - ED GARNER

    The latest TNS Worldpanel grocery market share figures, published today for the 12 weeks ending 19th April 2009, continue to show the resilience of the Grocery sector with a year-on-year growth rate of 6.2%.  As before this is below our measure of grocery price inflation as shoppers seek to control their expenditure, either by shopping around, or, more significantly, by switching to lower priced products.  This is being actively encouraged by some retailers with “Switch and Save” type promotions. 

    For this period, the strongest growth amongst the top 4 has been achieved by Sainsbury’s.  Their growth rate of 8.1% is well ahead of the market and has lifted their share from 16.1% a year ago to 16.3% now.  Whilst they have maintained their ethical stance on issues like Fairtrade and Free-Range, they have also fielded some aggressive promotions on the run-up to Easter together with featuring their Basics range. 

    Both Asda and Morrisons have grown ahead of the market and lifted their shares by 0.3 and 0.1 points respectively, whilst Tesco have seen a share drop of 0.5 points.  Having said that, their growth rate of 4.6% still translates into market leading cash growth because of their sheer size. 

    The Discounters Aldi and Lidl are still delivering double digit growth of 13.6% and 12.3% respectively but the expansion of the sector has slowed from the highs of last year – together with Netto the Discount sector holds 6.0% of the Grocery Market, up from 5.7% a year ago.

    It is worth noting that Waitrose has returned to growth, albeit behind the market.  Possibly a sign that shoppers’ panic response to the recession is being replaced by a sense of proportion, helped by promotions and the introduction of the ‘Essentials’ range.

    An update on inflation

    Grocery price inflation remains high and the figure for the 12 week-ending period 19th April 2009 is 9.0% compared with 9.3% seen 4 weeks ago.  Not only is the weakness of Sterling causing the importation of grocery price inflation, but it has become more advantageous for producers to export, thereby limiting the domestic supply.

    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.

    Total Till Roll

    Great Britain Consumer Spend

    Includes all expenditure through main store tills and excludes petrol & instore concession

    12 Weeks to 20 April 2008 12 Weeks to 19 April 2009 Change
    £000s % ** £000s % ** %
    Total Till Roll 28,137,958 28,940,922 2.9
    Total Grocers 20,340,643 100.0% 21,602,411 100.0% 6.2
    Total Multiples 18,882,578 92.8% 20,121,423 93.1% 6.6
    Tesco 6,319,208 31.1% 6,610,558 30.6% 4.6
    Asda 3,438,021 16.9% 3,711,709 17.2% 8.0
    Sainsbury's 3,266,322 16.1% 3,530,582 16.3% 8.1
    Morrisons 2,318,389 11.4% 2,490,783 11.5% 7.4
    Somerfield 744,261 3.7% 719,540 3.3% -3.3
    Waitrose 800,949 3.9% 826,709 3.8% 3.2
    Iceland 348,375 1.7% 379,426 1.8% 8.9
    Netto 148,125 0.7% 151,470 0.7% 2.3
    Lidl 457,544 2.2% 513,845 2.4% 12.3
    Aldi 556,793 2.7% 632,505 2.9% 13.6
    Farm Foods 103,632 0.5% 121,228 0.6% 17.0
    Other Freezer Centres 48,670 0.2% 49,250 0.2% 1.2
    Other Multiples 332,290 1.6% 383,818 1.8% 15.5
    The Co-operative 893,548 4.4% 945,723 4.4% 5.8
    Total Independents 564,516 2.8% 535,264 2.5% -5.2
    Total Symbols 204,994 1.0% 198,753 0.9% -3.0
    Other Independents 359,522 1.8% 336,511 1.6% -6.4
    ** = Percentage Share of Total Grocers

     

    To view the video commentary from Ed Garner or to get further information please visit http://www.tns-global.co.uk/_assets/video/worldpanel_april_09.wmv

    - ends -

    Note to editor

    These findings are based on TNS Worldpanel data for the 12 weeks to 19th April 2009. 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:

    Maja Rode/Sara Taylor
    Camargue
    +44 (0) 20 7636 7366 
    mrode@camarguepr.com

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