Sainsburys Delivers Impressive Growth, Increases Market Share

Wed, 29 Apr 2009
 
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Sainsbury’s recorded the strongest growth among the big four supermarkets for the first three months of the year, according to latest figures from TNS Worldpanel.

The UK’s third largest supermarket chain achieved a growth rate of 8.1 per cent year in the 12 weeks to April 19, which lifted its market share from 16.1 per cent a year ago to 16.3 per cent.

TNS said the impressive growth, which far outstripped the 6.2 per cent growth rate of the overall grocery sector during the period, was helped by aggressive promotions in the run-up to Easter.

Market leader Tesco saw its share of the market fall by 0.5 per cent year-on-year to 30.6 per cent. However, TNS said its growth of just 4.6 per cent still translates into market-leading cash growth because of the sheer size of the retailer .

Asda and Morrisons also delivered market-beating growth, boosting their share of the market by 0.3 per cent and 0.1 per cent respectively.

Discount chains Aldi and Lidl continued to achieve impressive double-digit growth in market share - up by 13.6 per cent and 12.3 per cent respectively, although the pace of their expansion has slowed from the highs of last year.

The discount sector, which also includes Netto and Iceland, currently holds a 6 per cent share of the UK grocery market, up 0.3 per cent on last year, according to the TNS figures.

Commenting on Waitrose’s performance, TNS director Ed Garner said: "It is worth noting that Waitrose has returned to growth, albeit behind the market."

"This is possibly a sign that shoppers' panic response to the recession is being replaced by a sense of proportion, helped by promotions and the introduction of the 'Essentials' range."

Figures also published by TNS showed grocery price inflation remained high at 9 per cent in April, as the weak value of the pound made it more expensive to import and encouraged producers to export, therefore limiting domestic supply.

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