Sainsbury's Strengthens In The Run Up To Christmas

Sainsbury’s continues to be the only top four retailer to build its market share this period with growth well ahead of the market at 6.1%. This is the 21st consecutive period that Sainsbury’s has grown its year-on-year share value.

Edward Garner, Communications Director at Kantar Worldpanel, comments:
“The large customer base of the top four retailers means that they must strike a balance between price and quality – low prices alone will not be enough to lure shoppers this Christmas. Sainsbury’s has hit a sweet spot with this balance and this is reflected in its continued growth.”

Both Tesco’s and Morrisons’ market share figures have remained largely consistent this period - close to the market growth baseline - with Tesco holding 30.6% of the market and Morrisons remaining stable at 11.7%. Asda’s market share continues to come under pressure at 17.2% of the market, however there are signs that this negative trend is abating as the share dip is less than in previous periods.

Edward Garner, comments:
“The Waitrose growth of 8.6% continues to impress, particularly when set against the growth of 12.3% we saw a year ago.”

The Discounters market share remains largely unchanged, demonstrating the success the top four retailers have had in retaining their customers.

Edward Garner, concludes:
“As retailers prepare for the festive season the relaunch of both Asda’s and Sainsbury’s own-label brands will be major factors influencing Christmas performance. It is also important to note that the share benefits of disposals and conversions to Co-operative, since its take-over of Somerfield, are now coming to an end and it will be interesting to see how the retailer performs going forward.”

An update on inflation
Grocery inflation is unchanged this period and the figure for the 12 week ending period 31 October 2010 is 3.0 %*.  According to Kantar Worldpanel this is evidence that the high level of promotions from retailers is countering the widely-reported commodity price increases.

*This figure is based on over 75,000 identical products compared year-on-year in the proportions purchased by British 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.


 
* = Percentage Share of Total Grocers

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

To view the video commentary from Edward Garner or to get further information please visit www.kantarworldpanel.com and select ‘Insights’ or follow Edward Garner on Twitter here.   

These findings are based on Kantar Worldpanel data for the 12 weeks to 31 October 2010. Kantar Worldpanel monitors the household grocery purchasing habits of 25,000 demographically representative households in Great Britain.

All data discussed in the above announcement is based on the value of items being bought by these consumers, Kantar will only support data that is published in the context we have presented it and our own interpretation of these findings. We cannot be held responsible for any other interpretation of these findings.  

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For further information, please visit us at www.kantar.com

9 November 2010