Tesco has seen its share of the grocery market dip over the last year, despite online and convenience store growth, according to the latest figures from Kantar Worldpanel.
Data published today for the 12 weeks ending 16 August 2015 shows “sluggish growth” in the British grocery market with an increase in sales of 0.9% compared to the same time last year.
Tesco continues to dominate the market, taking a 28.3% share of it. However, that’s down by 0.5% on the 28.8% it held a year ago, and the 28.5% it had at the same time last month. The movement comes as Tesco sales fell by 0.9%. In its analysis, Kantar says: “Buoyant growth in the convenience stores and online has not been enough to offset lower revenues in the larger shops.”
Its the grocers with established multichannel operations, however, that continue to dominate the market. Asda is second in the market with a 16.6% share that is down from last year’s 17.2% but up on last month’s 16.4%. Sainsbury’s continues in third place, with a 16.3% share. This is down from 16.4% last year, and 16.5% last month.
Gaining ground, though from a much smaller base, are the discounters, Aldi and Lidl, with a current share of, respectively, 5.6% (up from 4.8% last year and level with last month’s 5.6%) and 4.1% (3.6% last year; 4% last month) and Waitrose , with a 5.1% share (4.9%, 5%). Neither Aldi or Lidl yet sell online, though Waitrose has invested heavily in multichannel retailing. Growth, it seems, has come from cheaper prices, but that’s not enough to come close to the share of market enjoyed by the established multichannel players.
Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said: “Industry growth of around or below 1% has now persisted since summer 2014 and has become the new normal. Despite the accelerating British economy like-for like grocery prices are still falling, with a representative basket of everyday items now 1.7% cheaper than in 2014.”
