Asda share falls for ninth time in a row

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Asda’s market share has fallen for the ninth consecutive month, according to the latest data from Kantar Worldpanel, published today for the 12 weeks ending 5 September 2010.

It shows Asda’s sales grew by 2.6% in the latest period, behind the overall market growth of 4.3%.

Tesco also trailed the total market with sales up by 4% and it’s share remains largely unchanged.

The fortunes of the top four grocers continue to present a mixed picture, however. Sainsbury’s and Morrisons are both growing ahead of the market – 5.5% and 5.9% respectively – and increasing their market share.

Sainsbury’s performance is particularly impressive, says Kantar, which reveals the retailer has recorded year-on-year share growth for its 19th successive report.

Edward Garner, communications director at Kantar Worldpanel, said: “While uncertainty in the economy means value is still important, consumers are placing increasing importance on the freshness and quality of the food they buy. This is evident in the premiumisation we have seen in the grocery market and the strong performances of Sainsbury’s and Waitrose, which recorded another admirable growth of 9.3% this month. Recent statements from Asda’s chief executive Andy Clarke show the retailer has recognised the need to adjust its strategy and we’ve started to see a greater emphasis on quality in the latest advertising campaign.”

The discounters continue to languish behind the market with only Lidl recording a slight increase in market share this month and Netto experiencing a decline in its year-on-year growth of 6%.

By contrast the independents maintain their footing in the market following a good summer – a tribute to the smarter operators remaining in the convenience sector, said Kantar. Meanwhile the Co-operative conversion programme is nearly over and Somerfield has all but disappeared from the high street with just a 1% share of the market.

The latest grocery share figures and comparative data for the last three years are now available as an app for the iPhone. To download Kantar Worldpanel’s free Grocer Share app please visit the Apple iTunes Store.