AS TIMES GET TOUGHER, DISCOUNTERS REACH RECORD SHARE (PLUS AN UPDATE ON GROCERY PRICE INFLATION)

Email this to a friend

22.07.2008 UK

Chris Longbottom, Director TNS Worldpanel, comments

The latest TNS Worldpanel grocery market share figures, published today for the 12 weeks ending 13th July 2008 reveal that the success of the discounters is continuing. The Discounters now account for a 5.9% share of Grocery Spending, higher than ever before reported, and they are also the fastest-growing sector of the market. The total grocery market continues to grow strongly (+7% year-on-year), fuelled partly by food price inflation and also by better performance for Supermarkets than other Retail Outlets.

While the Discounters’ share in the UK has reached a new record, this level is still modest compared to the share they enjoy on the Continent (11% in France and 38% in Germany according to Europanel). Aldi and Lidl’s year-on-year growth stood at 20% and 14% respectively, reflecting their success in attracting more spend from hard-pressed shoppers, even though the majority of them still do most of their grocery shopping at the major supermarket chains.

Among the Top 4, both Asda and Morrisons enjoyed 9% growth, ahead of the market and yielding higher shares than last year. Tesco’s growth of 7% and Sainsbury’s of 6% were still creditable but slightly behind the overall market resulting in small share erosion. Such performance is indicative of the overall buoyancy but intense competition within the Grocery Sector in the current economic climate.

An update on inflation

As an update from last time’s figures, price inflation in Grocery increased to 5.8% for the 12 weeks ending June 15th 2008. This average, of course, masks a range of products from Dry Pasta (up 40%) and Eggs (up 34%) through staples like Bread (up 17%) and Milk (up 14%) to markets with minimal price inflation like Tea (up 2%) and Frozen Chips (down 4%).

This figure is based on 78,000 identical products compared year-on-year 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

12 Weeks to 15 July 2007 12 Weeks to 13 July 2008 change
£000s %   ** £000s %   ** %
Total Till Roll 26,969,671 28,042,540 4.0
 Total Grocers 18,987,479 100.0% 20,367,588 100.0% 7.3
  Total Multiples 17,627,884 92.8% 18,966,860 93.1% 7.6
    Tesco 5,988,872 31.5% 6,376,180 31.3% 6.5
    Asda 3,168,035 16.7% 3,452,126 16.9% 9.0
    Sainsbury's 3,069,365 16.2% 3,240,667 15.9% 5.6
    Morrisons 2,112,271 11.1% 2,304,775 11.3% 9.1
    Somerfield 726,204 3.8% 754,063 3.7% 3.8
    Kwik Save 19,864 0.1% -   0.0% -100.0
    Waitrose 742,082 3.9% 777,799 3.8% 4.8
    Iceland 313,805 1.7% 355,197 1.7% 13.2
    Netto 128,846 0.7% 128,377 0.6% -0.4
    Lidl 424,102 2.2% 484,654 2.4% 14.3
    Aldi 498,759 2.6% 596,195 2.9% 19.5
    Farm Foods 89,100 0.5% 103,310 0.5% 15.9
    Other Freezer Centres 44,277 0.2% 49,270 0.2% 11.3
    Other Multiples 302,300 1.6% 344,249 1.7% 13.9
   Total Coops 826,235 4.4% 867,408 4.3% 5.0
   Total Independents 533,360 2.8% 533,319 2.6% 0.0
    Total Symbols 188,523 1.0% 189,451 0.9% 0.5
    Other Independents 344,837 1.8% 343,868 1.7% -0.3

** = Percentage Share of Total Grocers

Note to editor

These findings are based on TNS Worldpanel data for the 12 weeks to 13th July 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

About TNS

TNS is a global market information and insight group.

Its strategic goal is to be recognised as the global leader in delivering value-added information and insights that help its clients make more effective business decisions.

TNS delivers innovative thinking and excellent service across a network of 80 countries.  Working in partnership with clients, TNS provides high-quality information, analysis and insight that improves understanding of consumer behaviour.

TNS is the world’s leading provider of customised services, combining sector knowledge with expertise in the areas of Product Development & Innovation, Brand & Communications, Stakeholder Management, Retail & Shopper and Customer Intelligence.  TNS is a major supplier of consumer panel, media intelligence and audience measurement services.

TNS is the sixth sense of business™.

http://www.tnsglobal.com/


About TNS Worldpanel™:

Worldpanel™ is TNS's continuous consumer panel sector, delivering insight into consumer purchasing and usage habits on a local and global scale.

Our coverage extends to more than 50 countries worldwide with services typically based on continuously monitored samples providing information on purchasing and usage activity. We use data collection technology best matched to the development of the environment that we are measuring, including bar code scanners, Internet, till receipt scanning as well as paper diaries and interviewing.

Worldpanel™ works closely with a wide range of clients including multi-national and local FMCG brand and private label manufacturers, fresh food suppliers, retailers, market analysts and government organisations.

© 1998-2008 Taylor Nelson Sofres plc. All rights reserved. Registered office: TNS House, Westgate, London W5 1UA.
Registered in England and Wales number 912624

Site by TH_NK