Tesco market share on the up, as Asda gains

Tesco saw its market share return to 30.2% in the 12 weeks to 18 March, although its 2.7% growth rate still lags behind its competitors and was 0.4% lower than the same period last year, according to the latest Kantar Worldpanel grocery share figures. However, this has been an improvement on growth rates seen earlier this year.

The trends highlighted by the latest research remain largely in line with the previous figures, with Asda continuing its strong performance, up 17.9%, with year-on-year growth at an all time high.

Edward Garner, director at Kantar Worldpanel, said: “The findings make particularly good reading for Asda. Its 17.9% share is an all-time record performance and its year-on-year growth rate of 7.8% is leading the big four, largely thanks to the full integration of its Netto stores.”

“The frozen food market remains buoyant and this has helped Iceland to enjoy 10.2% growth – good news for the new consortium owning the chain.”

The research also highlighted continued strength at both the premium and discounter end of the market, with Waitrose, Aldi and Lidl continuing to outperform the market. Aldi returned year-on-year growth of 28.5%, while Lidl was up 10.7% year-on-year.

However, Sainsbury’s, which had consolidated its strongest hold on the market since March 2003 in the 12 weeks to 19 February 2012, showed relatively static growth, and, along with Morrisons, it remained largely unchanged from the same period last year.

The overall grocery market grew at 4.0%, below the 5.5% grocery inflation rate. Kantar Worldpanel said that shoppers were having to take advantage of the current crop of special offers and make selective purchases to manage down their ‘personal’ inflation and rein in grocery spending.

Kantar has increased the number of households sampled by 20%, to 30,000, but it said that any changes to retailer shares as a result of the increased panel size are marginal and do not impact reported performance. It also said that period-on-period changes will not be affected, as the historical data has been reworked to maintain consistency.

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