Morrisons bucks trend to increase share of market

The Bradford-based group saw its market share rise from 11.6 per cent to 11.7 per cent, according to the latest Kantar Worldpanel data.

Market leader Tesco saw its market share fall from 30.8 per cent to 30.5 per cent.

Number two player Leeds-based Asda’s share fell from 17.6 per cent to 17.1 per cent while the third biggest, Sainsbury’s, saw its share of the market remain stable at 16.1 per cent.

The Kantar data showed that supermarket sales are lagging behind price inflation as shoppers switch to lower priced supermarket chains and buy cheaper goods.

The market research company said grocery sales rose by 3.8 per cent year-on-year in the 12 weeks to August 7, lower than the 5.2 per cent grocery price inflation during the period.

“It is evident that shoppers are trying to manage their ‘personal’ inflation by trading down. This can be done by seeking out lower priced outlets and cheaper alternative products,” Kantar said in a statement.

Budget chains Aldi and Lidl produced another good performance with Aldi growing sales by 24.4 per cent and the discounter hit an all-time record market share of 3.6 per cent, up from 3.0 per cent in the same period last year.

“It’s unsurprising that the discounters have pushed further ahead this month,” Kantar added.

Lidl grew sales by 13.8 per cent and its market share rose from 2.4 per cent to 2.6 per cent over the three-month period.

The supermarket sector is polarised, with hard discounters such as Aldi and Lidl growing at the bottom end of the market while upmarket chain Waitrose is growing much faster than its mainstream rivals.

Waitrose, part of the John Lewis Partnership, saw its market share grow from 4.1 per cent to 4.3 per cent over the three-month period. Waitrose grew sales by 8.3 per cent.

Iceland, which is up for sale, grew sales by 8.5 per cent to increase its market share from 1.8 per cent to 1.9 per cent.

Morrisons is seen as a possible buyer for Iceland.

Many retailers are struggling as shoppers see disposable incomes squeezed by rising prices, subdued wages growth and Government austerity measures.