Morrisons outperformed Tesco, Asda and Sainsbury’s in the 12 weeks ending 10 July 2011, according to the latest grocery market share data from Kantar Worldpanel.
With growth of 5.6%, Morrisons was the only retailer in the top four to grow ahead of the market in the period and increased its share from 11.8% to 11.9%, as a result.
Overall market growth was 4.6% and, despite a post royal wedding and Easter slump in growth of 2.5% in the four weeks to 15 May, the latest four weeks show increased retail growth of 3.3%. This suggests the market is picking up, said Kantar.
Market polarisiation continues as a key theme, however.
Aldi and Lidl posted strong double digit growth of 20.2% and 15.6% respectively. Combined, the discounters have a 6.1% share of the market.
Waitrose was the next big winner with growth of 9% and has increased its share from 4.1% a year ago to 4.3%.
Martin Whittingham, director at Kantar Worldpanel, said: “The increasing polarisation of the grocery market looks set to stay as consumers turn to the discounters to cut their budgets while others continue to spend in Waitrose. This divergence seems to be reflective of some contrasting lifestyles in the UK at the moment.”
Grocery inflation steadily crept up this period, rising from 4.6% to 4.8% this month, making it increasingly likely it will reach 5%, said Kantar.
Whittingham again: “While we previously predicted grocery inflation would not exceed 5% in 2011, we believe this no longer to be the case. It has been growing much faster than anticipated and as such we expect it to reach 5% and perhaps go beyond in the next few months. However, unlike the high inflation that we saw in 2008, when it was over 10% in a third of the grocery categories, we are only seeing double digit inflation in a small number of categories.
“The increasing inflation rate is putting extra pressure on shoppers’ ability to manage their household budgets. With this in mind we expect the grocery market to slow in the coming months.”