Discounters such as Aldi and Lidl are set to double their sales in the next 5 years, accounting for £1 in every £9 spent by 2019, according to grocery think tank IGD. Discounters would account for 11% of grocery sales, up from 6% currently in a market set to be worth £203bn, 16% larger than its current £175bn value, said IGD. "While price was initially what attracted people to discounters, shoppers tell us they feel there’s been an increase in quality," said IGD chief executive Joanne Denney-Finch."As discounters’ stores are also typically smaller than supermarkets, shoppers also say it’s quicker and easier to get round them.
"Discounters have been opening additional stores giving more people access to them and increasing their range of products to help people buy more of their groceries there. Half (51%) of shoppers told us they used food discounters in the last month to buy some of their food and groceries, up from 37% in 2011.
Other winning grocery channels would be online and convenience retail, which together with the discounters, would climb to more than 40% of the market within five years", IGD claimed.
Online retailing
Online retailing would be the fastest growing part of the market, more than doubling in value to £17bn– 8% of the market over the same period. A surge in usage of home delivery and click and collect services would boost the growth, IGD forecast.
"Online grocery sales are being boosted by a flurry of activity" said Denney-Finch. "Morrisons, for example, launched its new internet service earlier this year, while other players have enhanced their websites.
"There has also been a big push to offer non-store based click and collect pick-up points from locations such as tube station car parks. The online sales momentum is set to continue, with people using several digital devices to place orders and taking advantage of home delivery subscription schemes."
The convenience sector, already the second largest grocery channel, would keep growing, with convenience stores accounting for nearly a quarter (24%) of food and grocery sales by 2019, IGD predicted.
Traditional formats
However, it said it would not all be doom and gloom for more traditional superstores and hypermarkets. Although less money would be spent in these formats by 2019 than currently, most food and groceries would still be bought in these types of shops, it said.
They would still represent more than a third (35%) of the total grocery market by then and would increasingly be used as pick-up points for click and collect orders, and for online home delivery orders.
"While most food and groceries will still be bought at larger supermarkets and hypermarkets in five years, they are becoming less popular, but we’ve already seen the re-invention of some hypermarkets offering additional services such as restaurants and gyms," Denney-Finch said.
"There’s also been more investment in making the shopping experience more inspiring and user-friendly. This, for example, includes using digital technology to send personalised offers to people’s smartphones when they’re in-store and telling them where in the shop the items are located."
Source: www.foodmanufacture.co.uk. 30th June 2014
Showing posts with label Kantar. Show all posts
Showing posts with label Kantar. Show all posts
Friday, 4 July 2014
Kantar market shares - 22nd June 2014
“Aldi and Lidl continue their stellar growth streaks, holding their all-time record shares reached last period of 4.7% and 3.6% respectively. Both retailers have recently announced impressive expansion plans. Aldi will aim to double its store numbers to 1,000 by 2021, while Lidl is seeking to boost its presence with an eventual total of 1,500 outlets.”
Looking outside of the big four, Waitrose and Farmfoods are both continuing to perform strongly with the latter growing ahead of the market at 23.3%. Iceland held its 2.0% market share in line with last year.
Fraser continues: “There are mixed fortunes for the big four with Tesco and Morrisons registering falls in both share and sales. By contrast, both Asda and Sainsbury’s have increased share, beating the market average with growth rates of 3.6% and 3.0% respectively.”* Please note that the current period includes Easter 2014 whereas the comparative 2013 period does not.
An update on inflation
Grocery inflation has shown its ninth successive fall and now stands at 0.8% for the 12 week period ending 22 June 2014.
This is the lowest level in our dataset which began in October 2006 and reflects the impact of Aldi and Lidl and the market's competitive response as well as deflation in some categories including vegetables and milk.
GB Consumer spend
Friday, 30 May 2014
Convenience market to be worth nearly £50bn by 2019
The latest research from IGD shows the UK convenience market is worth £37bn, with this number set to increase to £49bn by 2019.
Source: IGD Retail Analysis and William Reed Business Media
Source: IGD, 23rd May 2014
Multiples show strong growth
The latest view of the market shows it has grown 5.2% year-on-year bringing the total value to £37bn. Within the channel, multiples have shown the fastest growth - up 16.3% for the 12 months to April 2014 and are now worth £7.3bn. Symbol groups still hold the largest market share at £15.5bn, representing £4 in every £10 spent in the convenience channel.| Convenience sales 2014 (£m) | Share of sales 2014 (%) | Sales change year to April 2014 (%) | |
| Symbol groups | 15,537 | 42 | 5.1 |
| Convenience multiples | 7,277 | 19 | 16.3 |
| Unaffiliated independents | 6,528 | 17 | -0.1 |
| Convenience Forecourts | 3,962 | 11 | -0.5 |
| Co-operatives | 4,125 | 11 | 2.3 |
| Total convenience | 37,430 | 100 | 5.2 |
Source: IGD Retail Analysis
Symbols and independents dominate
The convenience market is going through period of transition, with store numbers up 1.3% to 49,579. This increase has been driven by fewer independent retailers leaving the market and the continued growth of symbols and multiples. The multiples and symbols have increased store numbers by 13.6% and 2.8% respectively. Although multiples delivered the strongest growth, they still represent less than 10% of total stores.| Convenience sales 2014 (£m) | Share of sales 2014 (%) | Sales change year to April 2014 (%) | |
| Unaffiliated independents | 18,630 | 38 | -1.0 |
| Symbol groups | 17,080 | 34 | 2.8 |
| Convenience forecourts | 7,418 | 15 | -1.6 |
| Convenience multiples | 3,771 | 8 | 13.6 |
| Co-operatives | 2,680 | 5 | 1.6 |
| Total conveniecne | 49,579 | 100 | 1.3 |
Source: IGD Retail Analysis and William Reed Business Media
Convenience sector continues to build on its success
Joanne Denney-Finch, chief executive, IGD, said: “The convenience sector continues to build on its success and we’re forecasting almost £12bn in extra sales between now and 2019. Convenience stores are benefiting from changing social demographics, such as smaller households, and shoppers spreading more of their spending across a variety of grocery formats. Our latest ShopperVista research shows that seven out of ten (71%) of them are using both a supermarket and convenience shop in any given month. Our 24-hour, seven day a week society means people can buy anything, anywhere and at any time. Convenience stores are well placed to make the most of this trend as shoppers use them more than any other type of grocery format."Source: IGD, 23rd May 2014
Wednesday, 14 May 2014
Wednesday, 7 May 2014
Kantar May 2014: Price competition intensifying as big four continue to lose share to the discounters
Latest
grocery share figures from Kantar Worldpanel for the 12 weeks ending 27 April
2014 show that grocery market is growing at just 1.9% – the lowest level for at
least 11 years. This low growth has been caused by intensifying price
competition among the supermarkets and a resulting drop in price inflation.
Edward Garner, director at Kantar Worldpanel, explained: “There are clear signs that the major supermarkets are reviewing their strategies in the face of increasing competition. We’re now seeing the big four moving away from ‘here today, gone tomorrow’ promotions and toward everyday low prices – with Tesco, Morrisons and Asda all announcing price cuts this month.
“The proportion of sales on promotion currently stands at 45% among the big four. By contrast, the figure at Aldi is just 3%. Tesco now states ‘Prices down and staying down’, Asda features ‘Price lock’, Morrisons introduced ‘I’m Cheaper – everyday low prices’ and the Co-operative has adopted ‘Fair and Square’ pricing in a move to give shoppers lower everyday prices with greater transparency. Lower prices across the board is great for shoppers, but has driven down market growth to its lowest level in 11 years.”
The figures show that Waitrose, Aldi and Lidl all continued their strong growth, achieving new record shares during the period with 5.1%, 4.7% and 3.5% respectively. Aldi’s sales growth rate of 36.1% is an all-time record for the retailer and Lidl’s 20.9% growth is its highest since August 2004.
Among the big four, Asda proved the most resilient, holding its 17.3% market share and narrowly beating the market with 2.0% year-on-year growth. Tesco, Sainsbury’s and Morrisons all suffered declines in their market share, whilst Tesco and Morrisons recorded a fall in actual sales.
Kantar Worldpanel said that by its measure, grocery inflation now stands at 1.5%. This is the seventh successive fall and lowest level since June 2010 – reflecting the intensifying price competition in the market.
Edward Garner, director at Kantar Worldpanel, explained: “There are clear signs that the major supermarkets are reviewing their strategies in the face of increasing competition. We’re now seeing the big four moving away from ‘here today, gone tomorrow’ promotions and toward everyday low prices – with Tesco, Morrisons and Asda all announcing price cuts this month.
“The proportion of sales on promotion currently stands at 45% among the big four. By contrast, the figure at Aldi is just 3%. Tesco now states ‘Prices down and staying down’, Asda features ‘Price lock’, Morrisons introduced ‘I’m Cheaper – everyday low prices’ and the Co-operative has adopted ‘Fair and Square’ pricing in a move to give shoppers lower everyday prices with greater transparency. Lower prices across the board is great for shoppers, but has driven down market growth to its lowest level in 11 years.”
The figures show that Waitrose, Aldi and Lidl all continued their strong growth, achieving new record shares during the period with 5.1%, 4.7% and 3.5% respectively. Aldi’s sales growth rate of 36.1% is an all-time record for the retailer and Lidl’s 20.9% growth is its highest since August 2004.
Among the big four, Asda proved the most resilient, holding its 17.3% market share and narrowly beating the market with 2.0% year-on-year growth. Tesco, Sainsbury’s and Morrisons all suffered declines in their market share, whilst Tesco and Morrisons recorded a fall in actual sales.
Kantar Worldpanel said that by its measure, grocery inflation now stands at 1.5%. This is the seventh successive fall and lowest level since June 2010 – reflecting the intensifying price competition in the market.
These findings are based on Kantar Worldpanel data
for the 12 weeks to 27 April 2014. Kantar Worldpanel monitors the household
grocery purchasing habits of 30,000 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.
NamNews - Wednesday 7th May 2014
Monday, 14 April 2014
Grocery sales continuing to rise in C Stores whilst supermarkets struggle
Grocery sales at convenience stores are on
the rise, bucking the continuing trend of slowing grocery sales at the UK’s
leading supermarkets, according to the latest data from Nielsen.
During the four weeks ending 29 March 2014, consumers spent -4.3% less (value) at the big supermarkets than the same period a year ago, buying -4.8% fewer units. However, the declines are due to last year’s Easter build-up, which always boosts sales at out of town stores, occurring in the corresponding period.
In contrast, value sales at the smaller convenience stores were up +0.6% year-on-year, despite last year’s early Easter.
“The underlying trend of shoppers moving away from larger to smaller stores continues,” said Nielsen’s UK head of retailer and business insight Mike Watkins.
“Historically, traditional convenience stores were used for immediate or ‘distress’ purchasing, however, the huge investment by the major supermarkets has transformed this format. The likes of Tesco Express, Sainsbury’s Local and Co-operatives now offer a greater variety of food and drink which can be purchased ahead for the next few days, so basket sizes and spend per visit are increasing.”
Although grocery trips that involve buying 1-5 items account for the majority (54%) of visits, Nielsen data shows they’re becoming less popular at the expense of 6-10 item baskets which now account for 20% of all trips – up 2.2% annually. Watkins commented: “It’s these 6-10 item shopping trips that are becoming the new battle ground in convenience.”
Aside from location (51%), value for money (43%) is the main reason why people choose where they do their “top up” grocery shopping – cited by twice as many shoppers than low prices (21%).
Meanwhile, Nielsen said that supermarket TV/press ad spend had dropped 35% due to ‘seasonality’; Iceland with biggest increase Again, due to last year’s early Easter, the UK’s 10 leading supermarkets spent 35% less on TV and press advertising in the four weeks ending 29 March (£23.0m in total) than in the same period a year ago.
Tesco spent the most on TV and press advertising in this period (£5.0m), narrowly ahead of Asda (£4.9m). Iceland had the biggest year-on-year increase in spend (+93%) among the top 10 supermarkets. Lidl (+49%) and Asda (+2%) were the only other two to increase spend year-on-year.
Watkins concluded: “Overall, trading momentum continues to be slow for all supermarkets ahead of Easter, particularly with slowing food inflation. The recent round of price cuts by some supermarkets, noticeably Morrisons, to stimulate sales hasn’t yet changed the retail landscape and is likely to take months to achieve.
“Waitrose and M&S continued their strong sales performance while Asda was the pick of the top four. The Co-operative is also benefiting from the shift towards convenience shopping, with trend figures better than all the top four. Shoppers continue to economise – but not compromise – and Aldi and Lidl still seem immune from weak consumer demand, entering the Easter trading period with even stronger momentum than last year.”
During the four weeks ending 29 March 2014, consumers spent -4.3% less (value) at the big supermarkets than the same period a year ago, buying -4.8% fewer units. However, the declines are due to last year’s Easter build-up, which always boosts sales at out of town stores, occurring in the corresponding period.
In contrast, value sales at the smaller convenience stores were up +0.6% year-on-year, despite last year’s early Easter.
“The underlying trend of shoppers moving away from larger to smaller stores continues,” said Nielsen’s UK head of retailer and business insight Mike Watkins.
“Historically, traditional convenience stores were used for immediate or ‘distress’ purchasing, however, the huge investment by the major supermarkets has transformed this format. The likes of Tesco Express, Sainsbury’s Local and Co-operatives now offer a greater variety of food and drink which can be purchased ahead for the next few days, so basket sizes and spend per visit are increasing.”
Although grocery trips that involve buying 1-5 items account for the majority (54%) of visits, Nielsen data shows they’re becoming less popular at the expense of 6-10 item baskets which now account for 20% of all trips – up 2.2% annually. Watkins commented: “It’s these 6-10 item shopping trips that are becoming the new battle ground in convenience.”
Aside from location (51%), value for money (43%) is the main reason why people choose where they do their “top up” grocery shopping – cited by twice as many shoppers than low prices (21%).
Meanwhile, Nielsen said that supermarket TV/press ad spend had dropped 35% due to ‘seasonality’; Iceland with biggest increase Again, due to last year’s early Easter, the UK’s 10 leading supermarkets spent 35% less on TV and press advertising in the four weeks ending 29 March (£23.0m in total) than in the same period a year ago.
Tesco spent the most on TV and press advertising in this period (£5.0m), narrowly ahead of Asda (£4.9m). Iceland had the biggest year-on-year increase in spend (+93%) among the top 10 supermarkets. Lidl (+49%) and Asda (+2%) were the only other two to increase spend year-on-year.
Watkins concluded: “Overall, trading momentum continues to be slow for all supermarkets ahead of Easter, particularly with slowing food inflation. The recent round of price cuts by some supermarkets, noticeably Morrisons, to stimulate sales hasn’t yet changed the retail landscape and is likely to take months to achieve.
“Waitrose and M&S continued their strong sales performance while Asda was the pick of the top four. The Co-operative is also benefiting from the shift towards convenience shopping, with trend figures better than all the top four. Shoppers continue to economise – but not compromise – and Aldi and Lidl still seem immune from weak consumer demand, entering the Easter trading period with even stronger momentum than last year.”
NamNews - Monday 14th April 2014
Friday, 28 March 2014
Own Labels vs Brands shelf wars: who will seize the space?
The recent story of private label products vs. brands is a familiar one. Take an environment where food inflation is higher than real disposable income, add a decrease in product innovation, stir in squeezed retailers and this is what you get: a steady growth in private label sales.
In fact, between 2011 and 2013, private label (PL) sales have risen 1.32% at a total grocery level, according to the research we commissioned from Kantar Worldpanel for our Food Sense Forum event. And this trend continues into 2014 – with PL sales accounting for 46.49% of total grocery sales in January, 48.06% for February, and up by 0.88% compared to the same period in 2013.
Graph 1: Brand (Orange) versus all PLs: Standard, Premium and Economy (Green), Source: Kantar Worldpanel
So far, so obvious. When times are tough, consumers shop around. But is the value savvy consumer here to stay?
There is evidence to show they are not going anywhere in a hurry. Despite the rising fortunes of Aldi and Lidl, the research we commissioned shows that store choice and promotions are less significant drivers of above inflation spend than product choice. See the chart looking at why shoppers trade up/down from a baseline where spend growth matches exactly with inflationary growth.
Graph 2: This chart shows the 4 elements of trading up/down and plots them as a time series – bars below the line show how shoppers are trading down, bars above how they are trading up. The base line (or 0.0) is when spend growth matches exactly with inflationary growth, i.e. there is no trading up/down taking place. The 4 elements are Volume Change (Pink), Store Choice (Green), Promotion (Purple) and Product Choice (Orange).
Source: Kantar Worldpanel
The only time in the last three years that spend rose above inflation was in July 2012, when consumers traded up to more expensive products, driven by the sheer joy of the Olympics and the prospect of an actual hot summer.
While the fortune of brands has been linked to limited R&D and product innovation during the economic downturn, in reality just half of all new products survive two years on the shelves, according to Kantar Worldpanel.
It gets worse – the average product lifespan is 4-5 years.
With increasing competition among retailers for grocery spend, private label is set to become the new battleground.
Adrian Atterby, Director, Kantar Worldpanel, said: “For supermarkets, private label (PL) and the higher margins they achieve are a much needed antidote to the challenging environment. In some categories, branded products have disappeared from the shelves completely. In order for brands to remain successful and to warrant a place on shelf they must demonstrate a clear USP and one that isn’t easily copied by PL products.”
The key to a successful new product launch and survival in the fight for shelf space is category and story innovation.
In economic recovery, innovation that challenges category norms by being story-led, rather than product led, is likely to pay an increasingly important role. To emerge victorious, the recipe for success is equal measures of product innovation and story innovation.
Source: http://www.msllondon.com/blogs/2014/mar/25/shelf-wars-who-will-seize-the-space 25th March 2014
(Full presentation slides below)In fact, between 2011 and 2013, private label (PL) sales have risen 1.32% at a total grocery level, according to the research we commissioned from Kantar Worldpanel for our Food Sense Forum event. And this trend continues into 2014 – with PL sales accounting for 46.49% of total grocery sales in January, 48.06% for February, and up by 0.88% compared to the same period in 2013.
Graph 1: Brand (Orange) versus all PLs: Standard, Premium and Economy (Green), Source: Kantar Worldpanel
So far, so obvious. When times are tough, consumers shop around. But is the value savvy consumer here to stay?
There is evidence to show they are not going anywhere in a hurry. Despite the rising fortunes of Aldi and Lidl, the research we commissioned shows that store choice and promotions are less significant drivers of above inflation spend than product choice. See the chart looking at why shoppers trade up/down from a baseline where spend growth matches exactly with inflationary growth.
Graph 2: This chart shows the 4 elements of trading up/down and plots them as a time series – bars below the line show how shoppers are trading down, bars above how they are trading up. The base line (or 0.0) is when spend growth matches exactly with inflationary growth, i.e. there is no trading up/down taking place. The 4 elements are Volume Change (Pink), Store Choice (Green), Promotion (Purple) and Product Choice (Orange).
Source: Kantar Worldpanel
The only time in the last three years that spend rose above inflation was in July 2012, when consumers traded up to more expensive products, driven by the sheer joy of the Olympics and the prospect of an actual hot summer.
While the fortune of brands has been linked to limited R&D and product innovation during the economic downturn, in reality just half of all new products survive two years on the shelves, according to Kantar Worldpanel.
It gets worse – the average product lifespan is 4-5 years.
With increasing competition among retailers for grocery spend, private label is set to become the new battleground.
Adrian Atterby, Director, Kantar Worldpanel, said: “For supermarkets, private label (PL) and the higher margins they achieve are a much needed antidote to the challenging environment. In some categories, branded products have disappeared from the shelves completely. In order for brands to remain successful and to warrant a place on shelf they must demonstrate a clear USP and one that isn’t easily copied by PL products.”
The key to a successful new product launch and survival in the fight for shelf space is category and story innovation.
In economic recovery, innovation that challenges category norms by being story-led, rather than product led, is likely to pay an increasingly important role. To emerge victorious, the recipe for success is equal measures of product innovation and story innovation.
Source: http://www.msllondon.com/blogs/2014/mar/25/shelf-wars-who-will-seize-the-space 25th March 2014
Wednesday, 19 March 2014
Supermarket shopper promiscuity on the rise
Shopper promiscuity is on the rise as
shoppers spent an average of £19 per visit at the UK’s leading supermarkets in
February, according to the latest data from Nielsen. .
During the four weeks ending 1 March 2014, consumers spent -0.1% less money (value) at the UK’s leading supermarkets than the same period a year ago, buying -2.5% fewer units (volume). “The wet weather, historically low price inflation and squeezed household budgets meant the amount of money going through supermarket tills was marginally less than last year,” said Nielsen’s UK head of retailer and business insight Mike Watkins. “However, what’s most important is the way people are shopping.”
In February, 96% of UK households visited one of the top four supermarkets – Tesco, Sainsbury’s, Asda or Morrisons – while over 40% of households visited Aldi or Lidl.
Aldi and Lidl now account for 8.8% of all sales – up from 6.6% a year ago. This compares to 72% of sales held by the top four, down from 74%.
Watkins explained: “The range of supermarkets that shoppers now visit is the big change. Although the amount spent is falling, seven of the top 10 supermarkets managed to entice new customers over the last three months. Shopper promiscuity is the new reality.
“Of course, the discounters are increasingly popular – one in five Aldi visitors last month shopped there for the first time – yet they account for less than 9p in every £1 spent. People are still visiting the large supermarkets for the bulk of their shopping, ‘cherry-picking’ promotional items – spending £25 a visit – but buying more of their grocery staples in Aldi and Lidl, spending £17 per visit.”
Meanwhile, Nielsen highlighted that the UK’s 10 leading supermarkets spent 12.4% less on TV and press advertising in the four weeks ending 1 March (£21.4m in total) than in the same period a year ago. Asda spent the most on TV and press advertising in this period (£4.4m). This was also the biggest year-on-year increase (71%) in spend among the top 10 supermarkets. Waitrose (+29%) and Lidl (+22%) were the only other two to increase spend year-on-year.
Watkins concluded: “Many shoppers are buying items on promotion and then going elsewhere to finish filling their basket. So, the increasing challenge for supermarkets is not only driving footfall but also getting shoppers to buy more per visit. That means there’s a need to differentiate their offering but this has to be more than just through promotions or lowest price. It involves engaging shoppers with the overall shopping experience and providing value for money – as well as allowing them to save money”.
During the four weeks ending 1 March 2014, consumers spent -0.1% less money (value) at the UK’s leading supermarkets than the same period a year ago, buying -2.5% fewer units (volume). “The wet weather, historically low price inflation and squeezed household budgets meant the amount of money going through supermarket tills was marginally less than last year,” said Nielsen’s UK head of retailer and business insight Mike Watkins. “However, what’s most important is the way people are shopping.”
In February, 96% of UK households visited one of the top four supermarkets – Tesco, Sainsbury’s, Asda or Morrisons – while over 40% of households visited Aldi or Lidl.
Aldi and Lidl now account for 8.8% of all sales – up from 6.6% a year ago. This compares to 72% of sales held by the top four, down from 74%.
Watkins explained: “The range of supermarkets that shoppers now visit is the big change. Although the amount spent is falling, seven of the top 10 supermarkets managed to entice new customers over the last three months. Shopper promiscuity is the new reality.
“Of course, the discounters are increasingly popular – one in five Aldi visitors last month shopped there for the first time – yet they account for less than 9p in every £1 spent. People are still visiting the large supermarkets for the bulk of their shopping, ‘cherry-picking’ promotional items – spending £25 a visit – but buying more of their grocery staples in Aldi and Lidl, spending £17 per visit.”
Meanwhile, Nielsen highlighted that the UK’s 10 leading supermarkets spent 12.4% less on TV and press advertising in the four weeks ending 1 March (£21.4m in total) than in the same period a year ago. Asda spent the most on TV and press advertising in this period (£4.4m). This was also the biggest year-on-year increase (71%) in spend among the top 10 supermarkets. Waitrose (+29%) and Lidl (+22%) were the only other two to increase spend year-on-year.
Watkins concluded: “Many shoppers are buying items on promotion and then going elsewhere to finish filling their basket. So, the increasing challenge for supermarkets is not only driving footfall but also getting shoppers to buy more per visit. That means there’s a need to differentiate their offering but this has to be more than just through promotions or lowest price. It involves engaging shoppers with the overall shopping experience and providing value for money – as well as allowing them to save money”.
NamNews - Monday 17th March 2014
Wednesday, 18 December 2013
Over 1/2 of the country now shop in a discounter with big four continuing to lose market share
Latest
grocery share figures from Kantar Worldpanel for the 12 weeks ending 8 December
2013 show that, for the first time, over half the country shopped in either Aldi
or Lidl during the three month period. Some 50.1% of all British households
stepped into a discount retailer compared with 46.1% a year ago.
Chris Longbottom, director at Kantar Worldpanel, commented: “Both Aldi and Lidl have continued to record double-digit growth and are successfully broadening their shopper base with half of all British households visiting one of them during the latest period. Aldi now boasts a record 4.0% of the grocery market having increased its share for nearly every 12-week period since the end of 2010. Lidl retains its record share of 3.1% which it reached during the summer.”
Value continues to be a powerful incentive for the British shopper, a fact that is further highlighted by Farmfoods which, while still a relatively small player in the market, has grown its sales by 36.6% compared with last year. At the other end of the market, Waitrose continued to perform strongly with 6.7% growth. Kantar Worldpanel said that based on past patterns, it is likely to further boost its market share over the all-important Christmas period, as is Iceland which traditionally performs well with its party food offering.
Elsewhere, all of the big four grocers and the Co-operative again lost market share. Among this group, the best performer continued to be Sainsbury’s, although the year-on-year growth of 1.8% was insufficient to match the market growth of 2.8%. Tesco accounted for 29.9% of sales in the latest period, Asda 16.9%, Sainsbury’s 16.8% and Morrisons 11.6%.
Meanwhile, Kantar Worldpanel said that grocery inflation stood at 3.0% for the 12 week period. This was the lowest level for a year and offers a small respite for hard-pressed household budgets.
Chris Longbottom, director at Kantar Worldpanel, commented: “Both Aldi and Lidl have continued to record double-digit growth and are successfully broadening their shopper base with half of all British households visiting one of them during the latest period. Aldi now boasts a record 4.0% of the grocery market having increased its share for nearly every 12-week period since the end of 2010. Lidl retains its record share of 3.1% which it reached during the summer.”
Value continues to be a powerful incentive for the British shopper, a fact that is further highlighted by Farmfoods which, while still a relatively small player in the market, has grown its sales by 36.6% compared with last year. At the other end of the market, Waitrose continued to perform strongly with 6.7% growth. Kantar Worldpanel said that based on past patterns, it is likely to further boost its market share over the all-important Christmas period, as is Iceland which traditionally performs well with its party food offering.
Elsewhere, all of the big four grocers and the Co-operative again lost market share. Among this group, the best performer continued to be Sainsbury’s, although the year-on-year growth of 1.8% was insufficient to match the market growth of 2.8%. Tesco accounted for 29.9% of sales in the latest period, Asda 16.9%, Sainsbury’s 16.8% and Morrisons 11.6%.
Meanwhile, Kantar Worldpanel said that grocery inflation stood at 3.0% for the 12 week period. This was the lowest level for a year and offers a small respite for hard-pressed household budgets.
NamNews - Wednesday 18th December 2013
Monday, 2 December 2013
Retail data shows slower price inflation
Kantar Worldpanel has reported a reduction in price inflation in its latest supermarket share figures.
According to Kantar, the four week period up to November 10th saw inflation standing at 2.9%, down from a high of 6.4% in January this year.
“This drop in price inflation has caused the value of the grocery market to slip into year on year decline, following six months of sales growth as consumers continue to focus on value and savvy shopping“ according to David Berry, commercial Director at Kantar WorldPanel.
And while the impressive growth at the discounters continues, this is the first time that Aldi has seen its quarterly year on year growth dip below 20% since April 2012. Previous forecasts estimated that the combined total market share of the discounters may exceed 15% in the last quarter.
Alcohol is bucking the trend for reduced price inflation where the average price has risen by 16%. David Berry further commented, “One area which continues to experience significant inflationary pressure is alcoholic drinks. Increased duty on alcohol as part of the October budget has affected wine in particular, where the average price has increased by 16%. As a result, 51,000 fewer shoppers have put wine in their baskets; while those who continue to buy have cut back by almost one bottle over the past 12 weeks.”
Source: Maria Stokes, Bord Bia - Irish Food Board - 29/11/2013
Wednesday, 20 November 2013
Kantar 12 w.e 10.11.2013 - Big 4 all lose market share as discounters and Waitrose continue to prosper
Latest
grocery share figures from Kantar Worldpanel for the 12 weeks ending 10 November
2013 show another all-time record share of 3.9% for Aldi as its consistent rise
continues unabated. The big four supermarkets – Tesco, Asda, Sainsbury’s and
Morrisons – all lost market share for the first time, whilst Waitrose continued
to shrug off the market turmoil as it saw its share increase yet again – an
unbroken trend since mid-2009.
Edward Garner, director at Kantar Worldpanel, commented: “The number of shoppers visiting Aldi has grown by 16% year-on-year at the same time as the average basket size has swelled by nearly 15%. In fact, almost a third of British households have shopped in Aldi in the past 12 weeks. Although in the shadow of Aldi’s performance, Lidl’s sales growth of 13.8% also remains strong”.
In direct contrast, Kantar Worldpanel pointed out that sales of premium products have also increased significantly over the past year with Christmas shoppers expected to be seeking both luxury and lower prices this year. During the period, sales of Tesco’s Finest range surged ahead with 16% year-on-year growth and Sainsbury’s Taste the Difference lifted sales by 12%.
Meanwhile, Sainsbury’s growth of 2.6% remained the highest of the leading multiples but dipped just below the market average of 3.2%. Morrisons year-on-year sales growth continued to be positive after the declines seen at the start of the year. Tesco performance remained poor with it the slowest-growing of the big four over the period, with sales up just 0.7% and its share of the market slipping from 30.5% to 29.8%.
Kantar Worldpanel said grocery inflation stood at 3.7% for the period, exceeding the overall grocery market growth of 3.2%, implying pressure on households to manage down their ‘personal inflation’ by seeking lower prices.
Edward Garner, director at Kantar Worldpanel, commented: “The number of shoppers visiting Aldi has grown by 16% year-on-year at the same time as the average basket size has swelled by nearly 15%. In fact, almost a third of British households have shopped in Aldi in the past 12 weeks. Although in the shadow of Aldi’s performance, Lidl’s sales growth of 13.8% also remains strong”.
In direct contrast, Kantar Worldpanel pointed out that sales of premium products have also increased significantly over the past year with Christmas shoppers expected to be seeking both luxury and lower prices this year. During the period, sales of Tesco’s Finest range surged ahead with 16% year-on-year growth and Sainsbury’s Taste the Difference lifted sales by 12%.
Meanwhile, Sainsbury’s growth of 2.6% remained the highest of the leading multiples but dipped just below the market average of 3.2%. Morrisons year-on-year sales growth continued to be positive after the declines seen at the start of the year. Tesco performance remained poor with it the slowest-growing of the big four over the period, with sales up just 0.7% and its share of the market slipping from 30.5% to 29.8%.
Kantar Worldpanel said grocery inflation stood at 3.7% for the period, exceeding the overall grocery market growth of 3.2%, implying pressure on households to manage down their ‘personal inflation’ by seeking lower prices.
These findings are based on Kantar Worldpanel data
for the 12 weeks to 10 November 2013. Kantar Worldpanel monitors the household
grocery purchasing habits of 30,000 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.
NamNews - Wednesday 20th November 2013
Thursday, 14 November 2013
Sainsbury's growth driven by own label, C-stores and online
Sainsbury’s has posted a 7% rise in first
half profit, outperforming rivals as its strategy focused on own label products
while investing in fast growing online and convenience channels chimed with
consumers. .
The group, which is battling Asda for the No.2 slot in the grocery market, said today that it made a profit before tax and one-off items of £400m in the six months to 28 September - at the top end of analysts’ forecasts. Total turnover during the period rose 4.3% to £12.68bn, whilst like-for-like sales (inc. VAT, ex. fuel) were up 1.4%.
Sainsbury’s has enjoyed 35 consecutive quarters of underlying sales growth, and is continuing to outshine Tesco, whilst successfully holding off the discounters Aldi and Lidl. The group said today that its own label sales are growing at twice the rate of branded goods and its Taste the Difference range has seen double-digit growth. General merchandise sales are also growing at around twice the rate of food sales. Meanwhile, online groceries sales are growing at over 15% with over £1bn in annualised sales and orders regularly exceeding 180,000 a week.
Sainsbury’s added 393,000 sq. ft. of new space during the period through six supermarkets, 50 convenience stores and two extensions. Its convenience business is growing at over 20%, opening around two new stores each week.
Despite the robust figures, the group warned that it expects its growth to rate to come under pressure in the second half as it faces tougher comparables with a year earlier. Chief Executive Justin King also warned that customer budgets remain tight and that the economic recovery may take time to translate into stronger household confidence.
Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers, said: "Without question, this is a strong performance from a resurgent Sainsbury’s, even though clouds remain on the investment horizon." He warned that intense competition, commodity prices and the company's sole UK focus limited its scope for further expansion.
The group is on track to meet its full-year target for one million square feet of new space but also said a review of its property pipeline has identified some sites where it no longer wants to build a supermarket. This resulted in a one-off write-down of £92m in today's results.
Meanwhile, Sainsbury's revealed that it is creating up to 16,000 temporary jobs over the busy Christmas and New Year period. Around 2,000 posts are expected to be made permanent, the group said.
The group, which is battling Asda for the No.2 slot in the grocery market, said today that it made a profit before tax and one-off items of £400m in the six months to 28 September - at the top end of analysts’ forecasts. Total turnover during the period rose 4.3% to £12.68bn, whilst like-for-like sales (inc. VAT, ex. fuel) were up 1.4%.
Sainsbury’s has enjoyed 35 consecutive quarters of underlying sales growth, and is continuing to outshine Tesco, whilst successfully holding off the discounters Aldi and Lidl. The group said today that its own label sales are growing at twice the rate of branded goods and its Taste the Difference range has seen double-digit growth. General merchandise sales are also growing at around twice the rate of food sales. Meanwhile, online groceries sales are growing at over 15% with over £1bn in annualised sales and orders regularly exceeding 180,000 a week.
Sainsbury’s added 393,000 sq. ft. of new space during the period through six supermarkets, 50 convenience stores and two extensions. Its convenience business is growing at over 20%, opening around two new stores each week.
Despite the robust figures, the group warned that it expects its growth to rate to come under pressure in the second half as it faces tougher comparables with a year earlier. Chief Executive Justin King also warned that customer budgets remain tight and that the economic recovery may take time to translate into stronger household confidence.
Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers, said: "Without question, this is a strong performance from a resurgent Sainsbury’s, even though clouds remain on the investment horizon." He warned that intense competition, commodity prices and the company's sole UK focus limited its scope for further expansion.
The group is on track to meet its full-year target for one million square feet of new space but also said a review of its property pipeline has identified some sites where it no longer wants to build a supermarket. This resulted in a one-off write-down of £92m in today's results.
Meanwhile, Sainsbury's revealed that it is creating up to 16,000 temporary jobs over the busy Christmas and New Year period. Around 2,000 posts are expected to be made permanent, the group said.
NamNews - Wednesday 13th November 2013
Wednesday, 23 October 2013
Kantar 12 w.e 13.10.2013 - Only Sainsburys and Waitrose holding off discounters
Latest
grocery share figures from Kantar Worldpanel for the 12 weeks ending 13 October
2013 show a further step in the remarkable rise of Aldi. Its latest market share
of 3.8% is yet another all-time record and is a sharp increase compared with
3.0% this time last year.
Edward Garner, director at Kantar Worldpanel, commented: “Aldi’s year-on-year growth rate of 31.7% is the latest in an unbroken series of double-digit growth figures that date back to early 2011. The retailer has done a particularly good job in conveying its competitive pricing message through its ‘Like Brands Only Cheaper’ and subsequent ‘Swap and Save’ campaigns – both of which have given the supermarket a clear point of difference.
“Lidl’s growth of 13.1% is somewhat overshadowed by Aldi’s performance but it nevertheless keeps up a strong run. The combined discounter share of 6.8% continues to grow and has remained above that of the Co-operative since March this year.”
The only grocers to resist pressure from the discounters were again Sainsbury’s and Waitrose which outperformed the market with growth of 3.7% and 7.6% respectively. Elsewhere, the polarisation of the grocery market and subsequent pressure on the middle-ground continued unabated, with Tesco, Asda and Morrisons, all recording growth behind the 3.0% market average.
Meanwhile, Kantar Worldpanel said that grocery inflation remained at 4.2% for the 12 week period. This exceeds the overall grocery market growth of 3.0% and implies increased pressure on households to manage down their ‘personal inflation’ by seeking lower prices.
Edward Garner, director at Kantar Worldpanel, commented: “Aldi’s year-on-year growth rate of 31.7% is the latest in an unbroken series of double-digit growth figures that date back to early 2011. The retailer has done a particularly good job in conveying its competitive pricing message through its ‘Like Brands Only Cheaper’ and subsequent ‘Swap and Save’ campaigns – both of which have given the supermarket a clear point of difference.
“Lidl’s growth of 13.1% is somewhat overshadowed by Aldi’s performance but it nevertheless keeps up a strong run. The combined discounter share of 6.8% continues to grow and has remained above that of the Co-operative since March this year.”
The only grocers to resist pressure from the discounters were again Sainsbury’s and Waitrose which outperformed the market with growth of 3.7% and 7.6% respectively. Elsewhere, the polarisation of the grocery market and subsequent pressure on the middle-ground continued unabated, with Tesco, Asda and Morrisons, all recording growth behind the 3.0% market average.
Meanwhile, Kantar Worldpanel said that grocery inflation remained at 4.2% for the 12 week period. This exceeds the overall grocery market growth of 3.0% and implies increased pressure on households to manage down their ‘personal inflation’ by seeking lower prices.
These
findings are based on Kantar Worldpanel data for the 12 weeks to 13 October
2013. Kantar Worldpanel monitors the household grocery purchasing habits of
30,000 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.
NamNews - Wednesday 23rd October 2013
Monday, 14 October 2013
Rising food prices to drive own label sales
Rising food prices will prompt more than a third of UK consumers to buy more own-label food and drink products, reveals research from consumer insight organisation Nielsen.
More than a third of UK shoppers plan to buy more own-label food products as prices rise, according to Nielsen
Up to 39% of UK shoppers planned to buy more own-label food and drink products as food prices rise, according to the research. But only 5% planned to buy more branded goods. Own-label products account for about 16% of global fast moving consumer goods value share, said Nielsen. James Russo, Nielsen senior vice president for global consumer insights, said: "Own-label brands have a potential advantage during inflationary times. However, the price must be right and marketing must be effective for private-label brands to succeed. Packaging impacts trust and quality perceptions, especially when own-labels extend beyond commodity or low-risk product categories."When asked about specific food categories, 13% of UK shoppers said they planned to buy more loose, unpackaged, unbranded cereal, such as rice, wheat and grains.
Frozen fruits and vegetables
While 8% of consumers said they would stock up on fresh or frozen fruits and vegetables, 7% said they planned to buy more canned fruits and vegetables. But 82% of respondents reported no plans to change their spending on staples, such as dairy products. More than 70% said they would not change purchase of meat and poultry and nearly 80% said their bread and bakery goods purchases would remain unchanged. The results contrasted with discretionary categories. Only 37% of UK respondents and 26% of those on the continent said they would buy the same amount of alcoholic beverages if food prices rise. More than eight-in-10 (81%) of UK shoppers and 85% of global consumers confirmed that rising food prices would influence their choice of grocery products.
"When it comes to rising food prices, nearly everyone feels the pain,"said Russo."Determining which product categories have staying power and which are more vulnerable is critical as consumers make trade-offs and tough in-store decisions.
'Stretch their budgets’
"Likewise, as consumers continually look for ways to stretch their budgets and find the best value for money, marketers need to identify retailers that will satisfy the unique demands of consumers around the world."Food was not the only product that would be impacted by rising food prices. Nearly two-thirds (63%) of UK respondents said they would cut spending on new clothes, while 60% said they would dine out less often. More than half (54%) said they would cut back on snack foods and 37% said they would spend less on holiday travel. The Nielsen Global Survey of Inflation Impact canvassed the views of more than 29,000 internet respondents in 58 countries.
Rising food prices in numbers.
* 81 – percent of UK consumers said rising food prices will impact their choice of grocery products.
* Four – in 10 Brits will shop more for own-label brands as food prices rise.
* Three – in 10 Brits will shop more at discount stores.
* 54 – percentage who will cut back on snacks.
Source: www.foodmanufacture.co.uk, Mike Stones, 9th October 2013
More than a third of UK shoppers plan to buy more own-label food products as prices rise, according to Nielsen
Up to 39% of UK shoppers planned to buy more own-label food and drink products as food prices rise, according to the research. But only 5% planned to buy more branded goods. Own-label products account for about 16% of global fast moving consumer goods value share, said Nielsen. James Russo, Nielsen senior vice president for global consumer insights, said: "Own-label brands have a potential advantage during inflationary times. However, the price must be right and marketing must be effective for private-label brands to succeed. Packaging impacts trust and quality perceptions, especially when own-labels extend beyond commodity or low-risk product categories."When asked about specific food categories, 13% of UK shoppers said they planned to buy more loose, unpackaged, unbranded cereal, such as rice, wheat and grains.
Frozen fruits and vegetables
While 8% of consumers said they would stock up on fresh or frozen fruits and vegetables, 7% said they planned to buy more canned fruits and vegetables. But 82% of respondents reported no plans to change their spending on staples, such as dairy products. More than 70% said they would not change purchase of meat and poultry and nearly 80% said their bread and bakery goods purchases would remain unchanged. The results contrasted with discretionary categories. Only 37% of UK respondents and 26% of those on the continent said they would buy the same amount of alcoholic beverages if food prices rise. More than eight-in-10 (81%) of UK shoppers and 85% of global consumers confirmed that rising food prices would influence their choice of grocery products.
"When it comes to rising food prices, nearly everyone feels the pain,"said Russo."Determining which product categories have staying power and which are more vulnerable is critical as consumers make trade-offs and tough in-store decisions.
'Stretch their budgets’
"Likewise, as consumers continually look for ways to stretch their budgets and find the best value for money, marketers need to identify retailers that will satisfy the unique demands of consumers around the world."Food was not the only product that would be impacted by rising food prices. Nearly two-thirds (63%) of UK respondents said they would cut spending on new clothes, while 60% said they would dine out less often. More than half (54%) said they would cut back on snack foods and 37% said they would spend less on holiday travel. The Nielsen Global Survey of Inflation Impact canvassed the views of more than 29,000 internet respondents in 58 countries.
Rising food prices in numbers.
* 81 – percent of UK consumers said rising food prices will impact their choice of grocery products.
* Four – in 10 Brits will shop more for own-label brands as food prices rise.
* Three – in 10 Brits will shop more at discount stores.
* 54 – percentage who will cut back on snacks.
Source: www.foodmanufacture.co.uk, Mike Stones, 9th October 2013
Friday, 4 October 2013
Aldi UK achieves record sales and profit
Aldi UK has posted a 40.6% rise in sales, to £3.9bn, in the year to 31st December 2012.
Source: IGD, 30th Sept 2013.
Sensational sales growth
Aldi’s 40.6% sales growth is a truly standout achievement. The performance far outstrips the growth achieved by the big four, with everybody but Sainsbury’s losing share in 2012, according to Kantar Worldpanel data. Aldi has even outperformed its closest rival, Lidl, who achieved growth of c.10%. Aldi’s sensational performance cannot be attributed to a single factor, but to a raft of successfully implemented strategic goals. These include strong, personal marketing campaigns that have highlighted both quality and value; a broader range, relevant to the Aldi shopper, that has been able to fulfil a wider range of missions; significant improvements to availability, in both its core ranges and its special buys; improved customer service; portfolio expansion into great locations; and continuous focus on cost to ensure it consistently delivered value for money.Soaring profits
The discounter saw pre-tax profits more than double in the period, reaching a record £157.9m. The accounts due to be filed at Companies House today, show a 4.4% operating margin, according to The Telegraph. Such strong profit growth has been supported both by incredible sales growth and though continued focus on maintaining a low cost base and lean operations.Major investment planned
As Aldi looks to maintain the positive momentum it has created in the UK, it will be investing £400m in its portfolio across 2013 and 2014. The discounter is expected to open around 100 stores as it looks to expand its reach, and make its stores accessible to more of the population.Targeting the full weekly shop
Over the past few years Aldi has steadily expanded its range, introducing new products that allow it to cater more credibly for the full weekly shop. Roman Heini, joint MD at Aldi UK, said "We have always been seen as a top-up shopping destination and that has changed now. Most shoppers see us today as a weekly shopping destination". Delivered on value has also been a key factor in Aldi's success. Matthew Barnes, joint MD to at Aldi UK, said "We have done everything we can to shield customers [from commodity price increases]. Our price discount on things like fresh meat has grown significantly in the past year, because we have not passed on anything like the costs [others have done]Source: IGD, 30th Sept 2013.
Thursday, 26 September 2013
Nielsen 12 w.e 14th September 2013 - 4 in 10 households visit discounters for grocery shopping
In the
four weeks to mid-September, almost 40% of households in the UK shopping for
groceries visited Aldi or Lidl, helping the discounters to continue gaining
share at the expense of the major supermarkets, according to latest retailer
performance figures released by Nielsen. .
Aggregate sales value growth for the leading supermarkets during the four weeks ending 14 September 2013 was up 2.1% year-on-year. For the previous four-week period (ending 17 August 2013), year-on-year sales value growth was up 1.4%.
Unit sales (volume) decreased 1.5% year-on-year, compared to a 1.8% decrease year-on-year during the previous four weeks.
Explaining the figures, Nielsen’s UK head of retailer and business insight Mike Watkins said: “Although September got off to a good start, sales growths weakened when compared to the moderately successful period involving last summer’s Paralympic Games. This suggests that sustained sales momentum remains elusive for many retailers and will continue to do so until the next wave of promotional activity.”
Meanwhile, Nielsen research found that TV and press advertising spend by the 10 leading supermarkets in the four weeks ending 14 September was down 2.6% over the same period a year ago to £21.0m. Watkins noted: “Many supermarkets continued to reinforce their price message, such as highlighting ‘back to school’ offers and fuel savings. Although TV and press spend was down, overall, Tesco doubled spend to over £5m to support their new Love Every Mouthful campaign.”
Despite the slower market, the more premium end of the market continued to outperform the overall sector with Waitrose sales up 9.0%, M&S up 7.0%, and Sainsbury’s up 5.2% in the 12 weeks ending 14 September.
Aldi (+21.1% value year-on-year) and Lidl (+7.4%) continued to gain market share in the 12 weeks ending 14 September at the expense of the leading players – Sainsbury being the only one of the top four to increase market share year-on-year.
Commenting on retailer performance, Watkins added: “Almost 40% of households shopping for groceries in the last four weeks visited at least one of the two leading discounters – Aldi or Lidl. Many British shoppers are now using these retailers as part of their regular shopping trips, and this is impacting the FMCG market share of some of the major supermarkets.
“This trend may well continue as almost two-thirds of British consumers (according to a Nielsen survey) have changed spending habits to save money, and many shoppers anticipate a need to do so even when the economy finally improves.”
NamNews - Thursday 26th September 2013
Wednesday, 25 September 2013
Kantar 12 w.e 15.09. 2013 - Tesco, Asda and Morrisons remain under pressure as Waitrose and discounters thrive
|
| |
|
Latest
grocery share figures from Kantar Worldpanel for the 12 weeks ending 15
September 2013 show the big four supermarket multiples remaining under pressure
as price becomes less of a differentiator for shoppers and the budget and
premium ends of the market continue to grow. .
Whilst Tesco, Asda and Morrisons struggled for growth and lost market share, the discounters continued to perform strongly with year-on-year sales growth of 32.7% for Aldi, another all-time record, and 14.3% for Lidl. At the same time there is no sign of Waitrose running out of steam, delivering growth of 9.7%. Edward Garner, director at Kantar Worldpanel, commented: “Strong performances by retailers at both ends of the market pose a significant challenge for the big four supermarkets. The combined growth of Lidl, Aldi and Waitrose has taken three market share points out of the grocery market over the past three years and is forcing the major supermarkets to compete for an ever-smaller middle ground.” He added: “Price match promotions such as Asda’s ‘Price Guarantee’, Sainsbury’s ‘Brand Match’ and Tesco’s ‘Price Promise’ have meant that price is less of a differentiator and shoppers cannot be convinced to switch outlets based on cost alone. There has been a renewed focus on providing high-quality own label products and this strategy seems to be paying dividends. The upmarket ranges of Tesco Finest and Sainsbury’s Taste the Difference have both registered double digit growth as shoppers respond to the premium offer.” The data showed that Sainsbury’s was the only one big four grocers to increase its market share over the past year, growing from 16.4% to 16.6% and recording market-beating growth of 5.1%. The other big multiples have all lost market share over the past year, although Asda is ahead of Tesco and Morrisons in terms of its year-on-year sales growth which stands at 2.4%. Despite its efforts to revive its performance, Tesco’s sales increased just 1.9%, well below overall grocery market growth of 4.2%. The latest sales figures gave Tesco a grocery market share of 30.2%. Though that matched the figure in Kantar’s August report it was still down from 30.9% in the same12 week period last year. Meanwhile, Kantar Worldpanel added that by its measure, grocery inflation increased to 4.2%. This matches the overall grocery market growth and suggest that the pressure on households to trade down has abated compared with most of 2011 and 2012. 
These
findings are based on Kantar Worldpanel data for the 12 weeks to 15 September
2013. Kantar Worldpanel monitors the household grocery purchasing habits of
30,000 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.
NamNews - Wednesday 25th September 2013
|
Wednesday, 17 July 2013
Kantar update: Big Four remain under pressure; Morrisons and Co-Op showing signs of improvement
|
Latest
grocery share figures from Kantar Worldpanel for the 12 weeks ending 7 July
2013, show the big four supermarkets under pressure as a result of continued
market polarisation. .
Lidl grew its market share to 3.1%, an all-time high for the discounter, while Aldi retained its record 3.6% which it established during the last period. The growth rate at Waitrose remained strong at 10.9%, nearly three times the market average, and means the retailer now accounts for 4.8% of the market. Edward Garner, director at Kantar Worldpanel, commented: “Waitrose, Aldi and Lidl have all been hugely successful in recent years, growing well ahead of the market average. Together, these retailers now account for 11.5% of the grocery market, 3.2 percentage points more than they did this time four years ago. This trend has cut deeply into the available market share for the bigger retailers who are now having to compete for a contracting middle ground.” Among the big four supermarkets, Tesco and Asda saw their share dip with only Sainsbury’s managing to not lose share in the past year with year-on-year growth of 3.8%. Morrisons continued to lose market share, although the retailer’s sales growth has shown progressive improvement during 2013 – rising from the low of -1.7% in January to the current figure of 1.8%. The embattled Co-operative Group shrugged off the woes in its banking arm as its food business saw sales growth for the first time since February. It sales edged 0.2% higher, although its market share remained under pressure, dropping from 6.6% to 6.4%. Meanwhile, the Kantar Worldpanel data showed that recent price matching campaigns at the larger retailers have served to shine a spotlight on private label quality. Garner said: “The latest price matching promotions from retailers have reduced the amount consumers are shopping around, with many people feeling that they can get the same prices at different retailers. “As a result we are seeing an increased focus on quality. Both Tesco Finest and Sainsbury’s ‘Taste the Difference’ ranges are now growing strongly and Aldi’s ‘Like Brands only Cheaper’ campaign and Lidl’s ‘Taste Test’ are positioning their private products as direct competitors to major brands.” The Kantar Worldpanel data also showed that grocery inflation remained at 3.9% in the 12 week period. This was only slightly higher than the market growth of 3.7% which means that the pressure on households to trade down has decreased compared with last period. 
These findings are based on Kantar Worldpanel data
for the 12 weeks to 7 July 2013. Kantar Worldpanel monitors the household
grocery purchasing habits of 30,000 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.
NamNews - Wednesday 17th July 2013
|
Tuesday, 2 April 2013
Kantar to w.e 17th March 2013 - Sainsbury's, Aldi and Waitrose grow share but Morrisons and Tesco still losing ground
Latest
grocery share figures from Kantar Worldpanel for the 12 weeks ending 17 March
2013 show Sainsbury’s was the clear winner among the big four while elsewhere
Waitrose and Aldi recorded the two highest percentage growth rates this period.
Meanwhile, Tesco, the supermarket most heavily hit by the revelations of horse
meat scandal, looks to be suffering from the furore as figures showed an ongoing
depression in its market share. Morrisons, untarnished by the scandal, had been
expected to benefit, although wider issues with its strategy still appear to be
holding it back.
Sainsbury’s year-on-year growth of 6.2% firmly beat the total market growth of 3.9%. Since 2004, its annual share has been on a rising trend and now stands at 16.8% for the 52 weeks ending 17 March. Market polarisation continued unabated with Waitrose and Aldi holding on to the record shares reported last month with growth rates of 12.5% and 30.8%. Fraser McKevitt, retail analyst at Kantar Worldpanel, commented: “Austerity and provenance are the key factors behind the varying retailer performances this month. Continued pressure on household budgets has helped Aldi, Lidl and Iceland to record market beating growths while Waitrose and Sainsbury’s have managed to mostly avoid adverse media coverage from the horse meat scandal.” Elsewhere in the big four, Asda held on to the record share of 17.9% it achieved a year ago, whilst Tesco’s share dipped from 30.2% to 29.4% and Morrisons was down from 12.3% to 11.7%. McKevitt said: "People haven't forgotten the scandal and frozen burger and ready-meal sales have still not recovered. However, there is certainly no overall spend decline from the horse meat scandal. If people don't want to buy processed meat, they are buying other proteins instead. "I suspect Tesco has been hit a little bit by it. It is the biggest retailer in the country and was scrutinised the most. Because of its size, there was always a good chance that if a product was affected, it would be selling it." He added: “Looking ahead, Tesco has responded with its Price Promise promotion which delivers coupons to shoppers at the tills and Morrisons has announced plans to plug its home-delivery gap during 2013. These strategies are expected to help boost the retailers’ performances going forward.” Meanwhile, by Kantar Worldpanel’s measure, grocery inflation stood at 4.2% for the 12 week. This remains higher than the market growth of 3.9% and reflects shoppers’ coping mechanisms such as switching products and retailers and seeking out offers. 
These findings are based on Kantar Worldpanel data
for the 12 weeks to 17 March 2013. Kantar Worldpanel monitors the household
grocery purchasing habits of 30,000 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.
Source: NamNews - Wednesday 27th March 2013
|
Friday, 1 March 2013
Kantar to w.e 17th February 2013
From: igd.com, 26th February 2013
The latest retailer share data from Kantar Worldpanel, for the 12 weeks to 17 February 2013, shows the UK grocery retail market accelerating on the previous period, with growth up to 3.7%. However, inflation remains persistently higher. The Kantar measure indicates this stood at 4.7% for the period, suggesting that volumes remain negative.
| 12 w.e 19 Feb 2012 (% share) | 12 w.e 17 Feb 2013 (% share) | Sales growth (Y-o-Y %) | |
|---|---|---|---|
| Tesco | 30.1 | 29.7 | 2.4 |
| Asda | 17.8 | 17.7 | 3.1 |
| Sainsbury's | 16.9 | 17.0 | 4.6 |
| Morrisons | 12.4 | 11.8 | -1.3 |
| The Co-operative | 6.4 | 6.2 | 0.3 |
| Waitrose | 4.6 | 4.8 | 8.9 |
| Aldi | 2.6 | 3.3 | 30.1 |
| Lidl | 2.6 | 2.8 | 11.0 |
| Iceland | 2.1 | 2.2 | 10.1 |
| Farm Foods | 0.6 | 0.5 | -8.2 |
| Other multiples | 1.9 | 1.9 | 5.3 |
| Total symbols & independents | 2.0 | 2.0 | 3.8 |
Source: Kantar Worldpanel
Sainsbury's ahead of the curve again
After a couple of periods in which it appeared to be losing momentum, and notably over Christmas, Sainsbury's has once again picked up the pace; showing growth solidly ahead of the market once more with an indicated performance of +4.6%. As the only market-beater amongst the leading four, Sainsbury's was the only one of them to gain rather than lose market share, rising to 17%. Meanwhile, the festive spurt shown by Tesco appears to have dwindled in the New Year, with its performance dropping back behind the market to 2.4%.
A stronger performance from Asda
Following a slower end to 2012, Asda's growth has quickened in the New Year. Though still behind the market, this latest period shows it narrowing the performance gap, with an uplift of 3.1%. However, Morrisons has still to regain any clear sales momentum; its drop of 1.3% sees it lagging behind the market by a full five percentage points. The recent acquisition of stores from the Jessops and HMV estates will offer significant new space for Morrisons' convenience format going forward, but won't be on stream for some while yet.
Aldi is clear winner at +30.1%
Once again the performance number for Aldi indicates a powerful uplift, sustained now over a considerable period and showing no sign of slowing. Added to the strong growth also registered for Lidl, the discounters have now achieved a combined market share surpassing 6%.
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