Tesco grows share for the first time in two years

December 1, 2009

Tesco, the UK’s biggest supermarket, has increased its market share for the first time in nearly two years, according to the latest TNS Worldpanel grocery market share figures.

In the 12 weeks ending 1 November 2009 Tesco has grown its market share from 30.6% a year ago to 30.7% now.

Ed Garner, director, TNS Worldpanel, said this is the first time this has happened is TNS’s series of updates since the end of 2007.

“The Tesco growth rate of 4.7% year-on-year beats the market average of 4.4% and this has also not happened since the end of 2007,” he said.

“Not only is this evidence of the impact of Clubcard 2 (the doubling of the discount to 2% of spend) but also Tesco will be hoping for added impetus as the latest Clubcard mailout, currently taking place, puts coupons in shoppers’ hands in the run-up to Christmas.”

The next three retailers - Asda, Sainsbury’s and Morrisons - have all continued to outperform the total grocery market and have therefore increased their market shares.

Morrisons has again recorded the highest growth of the top four as it moves nationwide and consolidates the stores acquired from the aftermath of the Co-operative takeover of Somerfield.

The Co-operative has also increased its share as the retailer’s estate builds.

Garner said further signs that some shoppers are shrugging off the recession are provided by the buoyant Waitrose performance.

Its growth rate of 12.3% is the highest recorded by the business since September 2005.

The growth spurt enjoyed by the discounters at the end of 2008 has not been maintained, however, and the sector share of 6.1% remains unchanged year-on-year.

To view the video commentary from Ed Garner or to get further information please visit Worldpanel_MarketShare_Nov2009.wmv and Worldpanel_MarketShare_Nov2009.wmv

Ed Garner: Tesco in share turnaround