Tesco has lost market share as a result of its Big Price Drop promotion, according to the latest grocery share figures from Kantar Worldpanel, published today for the 12 weeks ending 27 November 2011.
It is the only retailer among the big four to see its share slip – from 30.7% a year ago to 30.5% – and its growth rate of 3.8% has also fallen behind the market, which is growing at 4.2% per year.
Edward Garner, director at Kantar Worldpanel, said: “This may at first seem disappointing for Tesco given the Big Price Drop initiative. However, it is not wholly unexpected. With more products available for less, the amount of cash taken at the tills has understandably dropped.
“Despite this, Tesco has successfully attracted more shoppers to its stores through the promotion. This strategy, coined self-imposed deflation by Tesco, is something we have seen in the past and it’s clear Tesco is using this method again to help shoppers save their pennies.”
Morrisons continues its positive run, seeing share uplift from 12.0% to 12.1%, for the eleventh period running, said Kantar. Asda has also posted its strongest growth since December 2009 as the integration of the UK Netto stores is completed.
Garner said: “Aldi and Lidl continue to enjoy strong growth helped by some discount shoppers migrating from Netto. However, this growth is below the record levels seen earlier this year and the total hard discount sector has slipped back to 6.0% from 6.2% a year ago.
“Waitrose seems to be immune from economic gloom with prospects of a record Christmas likely, as a result of its traditional seasonal uplift.”
The frozen food revival continues to buoy up Iceland’s performance with year-on-year growth of 11%, said Kantar.