Grocery market polarises between discounters and premium end

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Grocery market polarises between discounters and premium end

Grocery market polarises between discounters and premium end

Shopper spend on groceries is polarising between discount retailers, Aldi and Lidl, and the premium supermarket, Waitrose, the latest share figures from Kantar Worldpanel reveal.

Figures published today for the 12 weeks ending 15 May 2011, show Aldi and Lidl are powering ahead with double-digit growth of 15.4% and 16.1% respectively.

As a result, Aldi has achieved an all-time record share of 3.4%, compared with 3.1% a year ago; and Lidl has maintained a 2.6% share, equal to the record Kantar Worldpanel reported last month.

At the opposite end of the spectrum, Waitrose has grown by 8.8% and continues to impress, said Kantar.

It has increased its share from 4.1% over the same period last year to 4.3%, suggesting some consumers are not simply chasing low price.

Overall, the market increased by 4.8% in the period, compared to the lacklustre performance in March of 2.6%.

Edward Garner, communications drector at Kantar Worldpanel, said: “In the four weeks leading up to 15 May the year-on-year grocery growth rate actually rose to a remarkable 7.8%, bolstered largely by Easter shopping, the good weather and, of course, the royal wedding.

“A rising tide lifts all boats and the top retailers performed well this month, buoyed by the lifted market growth rate. Both Tesco and Morrisons increased their market share to 30.7% and 11.9% respectively, while Sainsbury’s share remained static at 16.3%.”

Asda has felt the pressure slightly this period, posting growth behind the market at 3.5% and dropping market share to 16.6% compared with 16.8% last year.

The Co-operative’s share (including Somerfield) has decreased from 7.4% a year ago to 6.8%. However, this is not a reflection of like-for-like performance as the OFT-directed store sales are still affecting the figures, said Kantar.

With speculation rife over potential bids for Iceland, the retailer posted strong sales growth of 5.7% and maintained its 1.9% market share.