Discount Supermarkets Report Sales Boom

The UK’s largest discount supermarkets have reported strong year-on-year sales growth as value continues to become shoppers’ number one agenda, the latest TNS Worldpanel figures have revealed.
Aldi, the German-owned supermarket chain, has registered sales growth of 20 per cent over the past four weeks, giving the grocer a record market share of 2.9 per cent, while rival supermarket Lidl has enjoyed a 14.9 per cent rise.
Meanwhile, a “revivial in frozen food” has led to a 15.2 per cent increase in business at Iceland, giving it a 1.7 per cent share of the total grocery market .
The latest TNS Worldpanel grocery market share figures, published for the 12 weeks ending June 15, confirm the trend outlined in the previous figures that value is being replicated among the big four grocers due to the effects of the credit crunch.
Market share at Tesco and Sainsburys dropped slightly as their sales growth of 5 and 4 per cent respectively remained behind the market average. By contrast, growth at Morrisons (10.2 per cent) and Asda (7.9 per cent) continued ahead of the market .
Edward Garner, director of research at TNS, explained: “It is now apparent that shoppers’ pursuit of value-for money is affecting the outlet shares in the sector.”
“Recent media commentary has produced some pretty scary figures for the annual rate of increase of food prices with figures up to 20 per cent being quoted.”
“While it is true that certain prices have indeed ‘rocketed’, TNS believe that it is more relevant to look at the average household shopping basket, taking account of sales levels and promotions and, as a result, state that price inflation in grocery stood at 4.6 per cent for the 12 weeks ending April 20, 2008.”

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