Tesco increases market share for first time in five years, says Kantar

The latest grocery share figures from Kantar Worldpanel, published today for the 12 weeks ending October 9 2016, show Tesco increasing sales by 1.3 per cent – marking a return to growth for the UK’s largest retailer for the first time since March 2015.

Tesco has grown ahead of the overall market, where sales increased by 0.8 per cent on last year.

Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said: “Foods including ready meals and produce have been among the fastest growing areas at Tesco, helped by its ‘Farm Brands’ but also its standard own label lines. Tesco has attracted a further 228,000 shoppers through its doors to help the grocer grow to a 28.2 per cent share of the market – its first year-on-year market share gain since 2011. Sales growth has been strongest among family shoppers, while improved trading from its larger supermarket and Extra stores has supported this month’s gains.

“While the threat of rising prices is on a lot of minds at the moment, we’ve seen the 27th consecutive period of grocery price deflation, albeit at a slower rate. The price of everyday groceries fell by 0.8 per cent compared with a year ago and in contrast to the -1.1 per cent reported last month, with deflation particularly noticeable among pork, crisps and poultry products.”

Other retailers winning market share this month include Iceland, Co-op and Waitrose. Iceland increased sales by 6.9 per cent with success across the store, not just in its core frozen lines which this period accounted for only 41 per cent of sales. Chilled and ambient grocery sales also grew, as did Iceland’s branded soft drink and frozen ready meal lines, and market share rose by 0.1 percentage points to 2.1 per cent as a result.

Co-op recorded its 17th consecutive 12 weeks of growth this period.

Mr McKevitt said: “Co-op’s sales are up by 3.1 per cent compared to a year ago, taking share up to 6.5 per cent of the market.

“Consumers are continuing to buy from Co-op stores more frequently with the average shopper now visiting almost twice a week – an 8 per cent increase.

“The convenience retailer is responding to challenges from the wider market by focusing on its own label lines, with its re-launched membership card rewarding shoppers who choose Co-op’s own products.”

At Sainsbury’s sales fell by 0.4 per cent, while Morrisons continues to feel the effects of a smaller store portfolio with sales down by 3.0 per cent.

The re-launch of its ‘The Best’ range has had a positive impact on its premium own label sales, which increased by 6 per cent. There was a similar picture at Leeds-based Asda where sales were down by 5.2 per cent – its slowest rate of decline for four months – despite a premium own label sales increase of 8 per cent.

Waitrose is still enjoying a sales uplift from its September half price event, with sales growing by 3.5 per cent and contributing to a market share increase of 0.2 percentage points to a total of 5.4 per cent.

At Aldi sales increased by 11.4 per cent while at Lidl they grew by 8.4 per cent, taking market share up to 6.2 per cent and 4.6 per cent respectively and maintaining the combined market share high of 10.8 per cent which the two retailers achieved last month.