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Healthy Competition in the Grocery Market Spells Good News For Consumer |
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Written by TNS
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03 Jul 2007 |
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“The latest TNS Worldpanel grocery market share figures, published today for the 12 weeks ending 17th June 2007, continue the recently emerging pattern of Sainsbury and Asda showing higher percentage growth rates than Tesco. Because of its size, the actual cash growth (i.e. the amount of money taken at the main tills) for Tesco continues to dominate all other retailers, but this emerging trend is evidence that there is healthy competition operating in the Grocery Market. It is also worth noting that the Independent sector may be finding its niche after decades of pressure from the Multiples – their share is stable and the growth rate of 8% is ahead of the market and the highest seen in recent years. Morrisons continues to be stable with the fourteenth successive period of year-on-year growth although this needs to strengthen before they can see share increases comparable to the other retailers in the top 4. Elsewhere, as Kwik Save awaits an administration hearing, its share has all but ceased to exist in the wake of the closure of 82 of its stores. The Kwik Save share decline is now dropping out of the year-on-year comparisons and this will make growth harder to find for competing retailers in the latter part of the year. Very recent speculation of a slow down in consumer spend on groceries across the board is yet to be reflected in these figures, which relate to the past three months of trading. However, we will need will need to watch market shifts closely to assess whether the reports are simply based on a seasonal glitch or a more serious long term change in consumer spending habits “.
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