Morrisons and Asda cheered by upturn

Yorkshire's two biggest retailers, Morrisons and Asda, will be cheered by the latest Kantar Worldpanel figures which show Morrisons to be the strongest firm out of the big four and Asda enjoying a second consecutive quarter of growth.
Leeds-based Asda increased shopper numbers by over 360,000 in the past 12 weeksLeeds-based Asda increased shopper numbers by over 360,000 in the past 12 weeks
Leeds-based Asda increased shopper numbers by over 360,000 in the past 12 weeks

Leeds-based Asda increased shopper numbers by over 360,000 in the past 12 weeks, lured in by the relaunch of its “Farm Stores” cheapest own brand label. Meanwhile shoppers are flocking to Bradford-based Morrisons in search of its premium own label range “The Best”, which has seen sales increase by over a third as nearly 800,000 additional shoppers chose products from “The Best” line over the past 12 weeks.'‹Chris Hayward, consumer specialist at Kantar Worldpanel, said: “Asda’s ‘Farm Stores’ is the rebranded ‘Smart Price’. Farm resonates with customers - they get it. The rebrand feels more upmarket, but the pricing is the same. Discount ranges have to be good quality and Asda’s quality is good.“Asda is having a challenging time, but this is good news. Asda is in recovery. This is something for them to build on.”Morrisons was the best performer out of the big four with a 1.9 per cent increase in sales over the 12 weeks to May 21 while Asda saw a 0.9 per cent increase.“ ‘The Best’ has certainly helped Morrisons, but they are also good at the basics,” said Mr Hayward.“Produce (fruit and vegetables) is performing well and so is online. Frozen is growing at 8 per cent and is one of Morrisons’ fastest growing categories. In times of austerity people go back to frozen.”Discounters Aldi and Lidl '‹grew at their fastest rate since 2015'‹ '‹and the two firms reached a joint record market share of 12'‹ per cent'‹.'‹Aldi'‹‘s sales rose 19.8 per cent and Lidl’s rose 18.3 per cent. Much of this is down to new store openings as both start from a low base and the big four are opening fewer new stores.However Mr Hayward said that more people are shopping at the discounters. 62 per cent of the population shopped at an Aldi or a Lidl over the quarter, up from 58 per cent this time last year, which equates to an extra 1.1 million households visiting the discounters.K'‹antar Worldpanel said inflation rose 2.9 per cent over the 12 week period, costing families an additional £27 over the quarter.“That may not seem like much, but if inflation continues at its current rate over the course of a year that would mean an extra £119 spent on groceries per household,” said Mr Hayward.'‹Overall sales '‹rose by 3.8'‹ per cent'‹ year on year, the market’s best performance since September 2013.All 10 UK grocers saw sales increase, boosted by higher prices as inflation continues.Own-label sales rose 6 per cent year on year, in contrast with branded products where sales grew by just 0.6 per cent, implying that shoppers are reining back their spending.“Different people are using different coping strategies,” said Mr Hayward. “People could buy less, but we’re not really seeing that. They are buying cheaper stuff. If you have a budget to stick to, you will buy cheaper products.”Kantar Worldpanel said prices have been rising since the 12 weeks to 1 January 2017, following a period of grocery price deflation which ran for 30 consecutive periods from September 2014 to December 2016. Rising prices in markets such as butter, fish and cola have been partially offset by falling prices in categories such as ambient cooking sauces and cooked poultry.Market leader '‹Tesco increased sales by 1.8'‹ per cent'‹ year on year, attracting more than 250,000 extra shoppers over the 12 weeks, helped by promotions on barbecue foods and its Food Love Stories campaign encouraging customers to cook from scratch.'‹'‹Sainsbury’s'‹ '‹sales '‹rose 1.7'‹ per cent'‹'‹, fuelled by a strong performance both online and '‹at '‹Sainsbury’s Local convenience stores. Waitrose sales '‹rose'‹ 3.3'‹ per cent. Iceland increased sales by 8.6'‹ per cent'‹, attracting 380,000 more shoppers.