Figures reveal Morrisons losing out to rivals

Supermarket Morrisons is under further pressure after industry figures showed it lost ground to bigger rivals Asda and Sainsbury’s.

Bradford-based Morrisons, Britain’s fourth biggest grocer, has seen its market share drop to 11.5 per cent in the 12 weeks to September 2, from 11.7 per cent a year earlier, according to Kantar Worldpanel.

In a spell covering the Olympics and Paralympics, Asda and Sainsbury’s posted market-beating sales growth of 4.5 per cent and 3.8 per cent respectively.

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Sainsbury’s market share rose to 16.4 per cent from 16.3 per cent a year earlier, while Asda’s lifted to 17.6 per cent from 17.4 per cent when excluding its Netto acquisition.

Morrisons has said its growth is trailing rivals as it hasn’t opened as many new stores and it is yet to enter the online grocery sector. In addition it has only recently entered the convenience store sector.

There was also evidence of a fightback by sector leader Tesco after a profit warning in January.

Kantar said Tesco’s share of the grocery market edged down 0.1 percentage point year-on-year to 30.8 per cent in the 12 weeks to September 2.

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This was “a relatively small decline compared with most of 2012 and evidence of some success in its fightback”, Kantar director Edward Garner said.

In April, Tesco slashed expansion plans for its British chain and said it would spend over £1bn improving stores and online shopping.

Tesco’s sales rose 2.8 per cent over the 12-week period, Kantar said, behind growth at Asda and Sainsbury’s.

Kantar said the total grocery market grew 3.3 per cent over the 12 weeks, above its inflation measure of 2.9 per cent.

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“Despite ongoing pressures, things seem to be looking up in the grocery market and shoppers are not having to trade down to the same extent as they have done over the past year,” said Mr Garner.

However, Kantar noted the inflation measure may have bottomed out with poor grain harvests driving inflationary spikes ahead.

Kantar said the big winners were outside the ‘big four’, with successes at the two opposite ends of the industry as Waitrose and discounter Aldi held on to record share and growth.

Waitrose, which is owned by the John Lewis Partnership, grew its market share to 4.6 per cent from 4.4 per cent thanks to growth of 7.8 per cent – outperforming the market average of 3.3 per cent growth.

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Aldi saw its market share leap to 2.9 per cent from 2.4 per cent a year earlier, having notched up growth of 26.6 per cent.

Mr Garner said Aldi’s growth was driven by “dramatic growth in spend levels of existing customers – up 36 per cent over the past two years – rather than an increased number of shoppers”.

In half-year results last week, profits from Morrisons fell £9m to £440m, but the group is hoping to turn its fortunes around.