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Sainbury's grows ahead of market

Sainsbury’s was the only grocer out of the big four to build its market share again in the latest Kantar Worldpanel grocery figures.

Sainsbury’s growth is ahead of the market at 6.1%, the 21st consecutive period that Sainsbury’s has grown its year-on-year share value.

Tesco and Morrisons market share figures have remained largely consistent for the period, in the 12 weeks ending October 31. Tesco held 30.6% of the market and Morrisons is stable at 11.7%. Asda’s share continues to come under pressure at 17.2%, however Kantar said there are signs this negative trend is abating.

Market growth remains ahead of inflation and there are as yet no signs of a return to trading down, as there was in 2008. Market growth is at 4% and Kantar said grocery price inflation is at 3%, virtually unchanged from the last period.

Edward Garner, communications director at Kantar Worldpanel, said: “The large customer base of the top four retailers means that they must strike a balance between price and quality – low prices alone will not be enough to lure shoppers this Christmas. Sainsbury’s has hit a sweet spot with this balance and this is reflected in its continued growth.”

He said Waitrose’s growth of 8.6% “continues to impress”, particularly when set against the growth of 12.3% a year ago.

The discounters have remained largely unchanged.

He added: “As retailers prepare for the festive season the relaunch of both Asda’s and Sainsbury’s own-label brands will be major factors influencing Christmas performance. It is also important to note that the share benefits of disposals and conversions to Co-operative, since its take-over of Somerfield, are now coming to an end and it will be interesting to see how the retailer performs going forward.”

Source : Jennifer Creevy - Retail Week

09 November 2010
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Martin Elliott. Chief Executive - Home Hardware.

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