Asda sees market share at lowest in nine years

Leeds-based Asda’s market share has fallen from 16.7 per cent this time last year to 16.2 per cent, its lowest level since 2006 according to the latest data from Kantar Worldpanel.

Sainsbury’s was the only winner out of the big four, increasing sales by 1.2 per cent, and it looks well placed to do well over the all important Christmas trading period.

In stark contrast, Asda and market leader Tesco saw sales slide 3.4 per cent in the 12 weeks to December 6. Morrisons sales fell 2.0 per cent as it starts to feel the impact of selling 130 convenience stores. ​

​Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said: “These are Asda’s worst figures since May 2006.

“Asda was the first of the major supermarkets to cut prices. Asda’s raison d’etre was cheap prices and the discounters have moved onto that turf. Asda is no longer as different as it was. That’s its problem.”

​He said that Aldi and Lidl, which enjoyed sales growth of 15.4 per cent and 17.9 per cent respectively to retain their 10 per cent market share, are also likely to emerge as winners over the festive season.

Mr McKevitt said the pair are likely to lose their 10 per cent market share over Christmas as traditionally they see their market share decline over the festive period as people splash out at the big four.

“However people are not just going to Aldi and Lidl for the cheap stuff now,” said Mr McKevitt.

​“​While many shoppers may not head to Aldi and Lidl for their entire Christmas shop​,​ more and more are likely to pop in for trimmings ahead of the 25th, and each discounter should hope to attract a healthy 10 million shoppers over the Christmas period.​”

He said that Morrisons would probably be pleased that its figures were not worse, but warned that store closures and the sell-off of the convenience store estate will dent future sales figures.

​“Morrisons has hired some very well respected executives, but it’s going to be a really tough challenge,” he added.

Sainsbury’s grew sales across its convenience, supermarket and online businesses​,​ tapping into demand for premium goods such as champagne and sparkling wine​.

“When we look at the Christmas numbers in four weeks time it is highly likely, unless something massive happens in the market place, that Sainsbury’s will consider themselves to be pretty well pleased with their Christmas performance,” said ​​Mr McKevitt.

The firm is benefiting from improved customer service and the move into higher margin non-food products, such as clothing. ​It has also been boosted by​ having more stores in the south east, where the economy is performing more strongly than the north.

Kantar said overall market growth was just 0.1 per​ ​cent, the lowest since June​.

“Although slow growth means a distinct lack of seasonal cheer for the market, the news is more positive for consumers looking to save this Christmas,” said Mr McKevitt.

​Last year customers spent an average of £71.33 on their big Christmas shop but with falling prices set to continue, shoppers are likely to enjoy a cheaper Christmas this year​, down by around two per cent, according to Kantar.

All the supermarkets are cutting prices, particularly on staples such as eggs and butter.

Kantar said the cost of everyday groceries fell by 1.9 per cent this month.

Analyst Clive Black at Shore Capital said: “The mass-market UK grocery industry remains very subdued as shoppers sustain recessionary behaviour, control waste, eat out more and reduce calorific intake.

“As for the big four, well they are collectively expected to sustain share losses for the foreseeable future.”