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Kantar: Tesco sees fastest growth in three years
Tesco has continued to grow its grocery market share, accelerating at its fastest rate in three years, the latest figures from Kantar Worldpanel have shown.
The UK’s largest supermarket grew 2.2% in the 12 weeks to 6 November 2016 – ahead of the overall grocery’s market 0.8% growth – boosting its market share to 28.3%.
Kantar Worldpanel’s head of retail and consumer insight Fraser McKevitt said the growth was a considerable improvement on both this time last year and 2014.
“Branded sales did see an increase but most of the gains were made through its own-label products, both at the cheaper and more premium ends of the price spectrum,” he said, pointing to Tesco Finest’ 6% growth.
“Much of Tesco’s growth has come from more affluent shoppers returning to the store, and average spend per trip is up by 2.1% to £20.69,” he added.
At the other end of the market, Iceland saw its market share grow, rising 8.3% to 2.1% of the market on the back of a more premium offer, while Aldi grew 10.2%, and Lidl also saw growth of 6.1% – slower growth than seen in previous months, but still well ahead of the wider market.
However there was less good news from the remaining big three multiples, with Sainsbury’s seeing sales down 0.7%, Asda tumbling 5% (taking its market share down by almost a whole percentage point compared to the same period last year) and Morrisons also falling 2.4%. However, McKevitt pointed to rises in sales of both Asda and Morrisons premium own-label which provided a bright spot in the 12 weeks results.
The Coop and Waitrose – which both overtrade heavily in wine – saw sales grow, up 2.2% and 3% respectively, but the symbols and independents saw a 7.1% fall, slipping below the 2% market share threshold, to 1.9%.
Meanwhile price deflation continued for the 28th consecutive month, standing at -0.5% over the same 12 week period – although McKevitt reiterated his belief that it was likely to rise before Christmas as long as there wasn’t another round of retailer price cuts, and pointing out it represented a significant reduction since last summer.
“Although it’s tempting to link any potential price increases to Brexit and the devaluation of sterling, it’s worth remembering that deflation has been easing since December last year, well before the referendum,” he added.