Tesco Clubcard raises grocer’s share

Activity on its Clubcard has helped Tesco increase its share of the grocery market for the first time in almost two years.

Tesco clubcard

According to analysis by TNS Worldpanel, the impact of Clubcard 2 (the doubling of the discount to 2% of spend) helped the market leader to a growth rate of 4.7% – beating the market average of 4.4%.

Tesco’s share of the market now stands at 30.7%, up from 30.6% a year ago. The company hopes this will continue on the back of the current Clubcard mailout, which is putting coupons in shoppers’ hands in the run-up to Christmas.

While the growth spurt enjoyed by the discounters in late 2008 has not been maintained, Waitrose has continued its impressive form with a 12.3% growth rate year-on-year – its market share is up from 3.7% to 4%.

Morrisons has also continued its rich vein of form, posting the highest growth of the top four (8.5%). Analysts are predicting another bumper Christmas for Morrisons.

Nielsen also published grocery market share figures this week, with the trends broadly in line with those from TNS. Nielsen senior manager retailer services Mike Watkins says Morrisons has attracted 650,000 new households to the store in the past year and is “setting the pace for this year’s Christmas trading”.

Part of its success has been down to the “Let’s Grow” campaign, which was this week handed the Grand Prix at the Institute of Practitioners in Advertising (IPA) Effectiveness Awards.

Sainsbury’s is due to report interim results on Wednesday and Asda its third-quarter sales on Thursday.

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