Chris Longbottom, Director, TNS Worldpanel, comments:
The latest TNS Worldpanel grocery market share figures, published today for the 12 weeks ending 22nd March 2009, continue to show a strong growth rate of 5.8%.
Whilst slightly lower than February’s this is against strong comparatives from 2008 when the March figures included Easter seasonal spending, which will occur more normally in April this year.
This growth in consumer spending remains below the Grocery price inflation of 9.3% as shoppers continue to seek to manage the impact of higher prices which are still feeding through year-on-year in the Grocery Sector. Shoppers trading down to lower-priced products, especially within the retailers’ Own Label ranges, is the main way they are seeking to contain this.
Asda has once again shown its strength as an everyday low price champion with another record share of 17.5% (17.1% this time last year) & year-on-year growth rate of 8.5%. Morrisons continued its consistent improvement with a share of 11.8% & growth of 7.2%
Sainsbury’s growth of 5.7% was in line with Grocery sector average, giving them a constant share of 16.1%
Tesco’s growth rate was marginally behind the sector at 4.3%, resulting in a share figure of 30.4% (compared to 30.8% last year), influenced by stronger consumer purchasing of the economically-priced Value range.
Discounters (Aldi, Lidl, Netto) continue to enjoy strong growth with Shopper Spending up 13% giving them a combined share of 5.9% compared to 5.5% last year. However there are some signs of a slowdown in this rate of growth, suggesting that the Major Multiples are becoming more successful in containing this long-term challenge.
An update on inflation
Grocery price inflation has increased and the figure for the 12 week-ending period 22nd March 2009 is 9.3% compared with 8.7% seen 4 weeks ago. The weakness of Sterling is feeding through to commodity price inflation.
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.
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