UK shoppers trade up to premium labels, reports Kantar
The latest grocery market figures from Kantar Worldpanel, for the 12 weeks ending 13 June 2010, demonstrate the ongoing premiumisation of the grocery market, with shoppers continuing to trade up as the gloom of the recession tails off.
In spite of total grocery market growth remaining subdued at 3.7%, this figure is higher than the grocery price inflation of 1.5%, indicating shoppers are reaching for premium ranges such as Tesco Finest and Morrisons’ The Best, said Kantar.
Furthermore, Waitrose continues to see a remarkably consistent share growth from a low point of 3.6% in November 2008 to a current 4.2%.
Among the top four retailers, last period’s trends remain intact: Tesco holds share at 30.8%, while Morrisons and Sainsbury’s have grown by 6.1% and 4.4% respectively.
Asda continues to underperform with its market share back down to a level not seen since November 2008.
Edward Garner, communications director for Kantar Worldpanel, said: “It’s interesting to see shoppers continuing to trade up as demonstrated by Sainsbury’s and Waitrose as well as Tesco Finest. As we emerge from the grip of the recession, quality is back on the agenda. This has come to Asda’s attention with its latest drive to promote its prize-winning products alongside the value message we’ve seen in recent months.”
Somerfield conversions continue to lift the Co-operative share.
While Iceland is reaping the results of its push into the convenience sector with aggressive long-term promotions on staple items such as milk, the hard discounters present a mixed picture, said Kantar.
Aldi has recorded another strong performance with growth of 7.9%, in contrast to Netto, which slumped into negative territory with a 2.2% decline. The performance of the Netto stores will no doubt be bolstered in the future by its acquisition by Asda with increases in staffing and product ranges, said Garner.
July 2010 Issue