Tesco growth after two-year standstill
Nov 11 2009 by Peter McCusker, The Journal
RETAIL giant Tesco has seen its first market share growth in almost two years as it fights back against competition, new industry figures show.
The UK number one – which has reaped the benefit of its recent double Clubcard points promotion – took 30.7% of the grocery market in the 12 weeks leading up to November 1, research firm TNS Worldpanel said.
This is ahead of the 30.6% recorded a year earlier and the first time Tesco has shown growth in market share since the end of 2007, TNS said.
Tesco is fighting back against competitors who have chipped away at the retail behemoth in the past year.
The firm’s 4.7% till roll growth was also ahead of the 4.4% seen by the wider market for the first time since 2007. Among its main rivals, Morrisons showed the fastest growth – up 8.5% – as it ratchets up expansion plans and consolidates stores bought from the Co-operative group following its takeover of Somerfield.
Asda – which is owned by US retailing giant Wal-Mart – consolidated its position as the UK number two with a market share of 17.3% in the 12 weeks to November, while Sainsbury’s is in third place with 15.9%.
The growth spurt enjoyed by discounters Aldi, Netto and Lidl has, meanwhile, faded as food price inflation eases and shoppers return to more mainstream names.
Their share of the market remained steady at 6.1%, year on year, TNS said.
But Waitrose has also tempted back customers deterred by high prices a year ago, showing a 12.3% increase in till roll takings, compared to 12 months earlier. This has lifted its market share from 3.7% to 4%.
