Discounters continue to grow market share

The latest figures released by Kantar Worldpanel for August show that the discount stores have continued to grow their market share in the 12 weeks ending 4 September 2011. 

Aldi saw the largest market share change, with 25.6% from the same period last year, while Morrisons, which returned positive half-year results last week with profits of £449m, saw the strongest growth in market share of the big four retailers, with a change of 5.3%. Sainsbury’s was not far behind at 4.8%, ahead of Tesco and Asda.

The sector has remained resilient, seeing an overall 4.5% market growth since the same period last year, and sales up, to £23m. However, this is below the 5.3% grocery price inflation, which increased by 0.1% since in the last period, as shoppers continue to control their expenditure.

Martin Whittingham, director at Kantar Worldpanel said: “The grocery market continues to deliver solid growth helped by inflation. Consumers are managing their budget by making more shopping trips but buying fewer items on each outing. These changes are at the margin but illustrate how shoppers are trying to cope with the increasing pressures on their household budget.

“The hard discounters of Aldi and Lidl continue to maintain their double digit growth with a collective 6.0% share of the grocery market. Waitrose, on the other end of the price scale, has achieved growth for the fifth consecutive period in the range 8 to 9% showing that the ‘two nations’ split remains an ongoing theme.”

Last week the British Retail Consortium-Nielsen shop price index for August showed that food inflation had slowed to 5.0% in August from 5.2% in July, partly as a result of global commodity prices dropping slightly. The

BRC director general Stephen Robertson said: “Competition between retailers continues to protect consumers from the full impact of food inflation. Nearly 40 per cent of all groceries going through the tills are on some sort of promotion or special offer, meaning savvy shoppers can reduce the impact of price rises on their own budgets by picking the deals that work best for them.”

>Morrisons’ profits in good shape

>Retail sales fall to new low

>Discounters witness market share growth