Appeal Of Discount Supermarkets Slowly Wearing Off

Thu, 25 Jun 2009
 
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Shoppers are starting to shun discount supermarkets in favour of returning to more upmarket rivals, according to the latest grocery market share figures from TNS Worldpanel .

Data for the 12 weeks ending June 14 showed that the stellar growth of discounters Aldi and Lidl has slowed dramatically with both retailers being eclipsed this period by Sainsbury's and Morrisons .

Sainsburys and Morrisons, the UK’s third and fourth largest supermarket chains, saw their share of the grocery market climb by 8.9 per cent and 9.3 per cent respectively, compared to the same 12-week period last year.

Meanwhile Aldi and Lidl’s respective share grew by 8.7 per cent and 7.5 per cent over the 3 months.

Although impressive, the growth figures are dramatically lower than those seen last July at the discount retailers, when Aldi's monthly market share grew by 19.5 per cent and Lidl's by 14.3 per cent.

Asda’s share grew by 8.2 per cent, while upmarket grocer Waitrose increased its takings by 7 per cent.

TNS director Ed Garner labelled Waitrose’s rise a "considerable bounce" and cited current advertising of its "Essentials" value range and early conversions of former Somerfield and Woolworth’s stores as "big contributing factors".

Tesco recorded its biggest growth so far this year at 6.2 per cent, just behind the market average of 6.5 per cent, meaning its market share of 30.8 per cent remains "virtually unchanged".

Garner said the latest figures are signs that customers are taking a "more measured approach to the recession" and starting to "revert to pre-recession behaviour".

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