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Home arrow Marketing Research News arrow Latest Market Research Findings arrow Price Competition Pushes Market Growth And Inflation To Historic Lows
Price Competition Pushes Market Growth And Inflation To Historic Lows PDF Print E-mail
Written by Kantar Worldpanel   
03 Jun 2014
The latest grocery share figures from Kantar Worldpanel, published today for the 12 weeks ending 25 May 2014, show a slowdown in grocery market growth to 1.7% – the lowest level for at least 11 years.*  Supermarket price competition is prompting another drop in the level of grocery price inflation to 1.2%.

Edward Garner, director at Kantar Worldpanel explains: “Despite the wider market slowing, Lidl achieved a record share of 3.6% this period, accelerating with its highest ever year-on-year growth of 22.7%.  Similarly, Aldi has gained 35.9% and retains its record 4.7% share reached last period.


“At Waitrose, managing director Mark Price’s tactic of being “everything that the discounters aren’t” seems to have paid off for the retailer.  By differentiating its offer, Waitrose has maintained its all-time record share of 5.1% secured last period.  Meanwhile, Asda surpassed its rivals with a market-beating growth of 2.4%, lifting market share to 17.1%, compared with 17.0% a year ago.  Asda is the only large grocer to grow share year-on-year."

Tesco, Sainsbury’s and Morrisons have all lost market share since this period last year, while Tesco and Morrisons recorded sales drops of 3.1% and 3.9% respectively.  Among the smaller retailers, Iceland’s growth rate has dropped back to average market levels with its share remaining at 2.0%, whereas Farmfoods is mirroring the likes of Aldi and Lidl, growing sales by 27.1%.

* With the exception of the March 2014 12 week ending period, affected by the late-falling of Easter this year.    

An update on inflation:
Grocery inflation has shown its eighth successive fall and now stands at 1.2%** for the 12 week period ending 25 May 2014. This is the lowest level since May 2010 and reflects the impact of Aldi and Lidl and the market’s competitive response.

**This figure is based on over 75,000 identical products compared year-on-year in the proportions purchased by shoppers and therefore represents the most authoritative figure currently available.  It is a ‘pure’ inflation measure in that shopping behaviour is held constant between the two comparison periods – shoppers are likely to achieve a lower personal inflation rate if they trade down or seek out more offers.

Kantar Worldpanal market share - total till roll

Follow us on Twitter at http://twitter.com/#!/KWP_UK and join the debate #kwpmarketshare.

Kantar Worldpanel supermarket share app:
Kantar Worldpanel’s supermarket share app has been relaunched. The app has been optimised for iPad, iPhone and Android and includes data and intelligence from Great Britain, Ireland, Spain and Portugal.  Download now on iTunes and Google play. 

For further information, please contact:

Laura Pattie/ Peter Rogers
Camargue
+44 (0) 20 7636 7366
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Last Updated ( 03 Jun 2014 )
 
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