Supermarkets buoyed as consumers trade up

The grocery sector is continuing to see signs of premiumisation as the recession eases, according to the latest market share figures from Kantar Worldpanel.

For the 12 weeks ending 13 June, total sector growth remains flat at 3.7% but Waitrose and Sainsbury’s are seeing growth ahead of the market with 4.2% and 4.4% respectively as shoppers trade up.

Asda continues to underperform its rivals with market share growth below the sector average at 2.7%, down to a level not seen since November 2008.

Morrisons continues to see the most growth among the big four retailers at 6.1% .

Edward Garner, communications director for Kantar Worldpanel, says: “As we emerge from the grip of the recession, quality is back on the agenda. This has come to Asda’s attention with their latest drive to promote their prize-winning products alongside the value message we’ve seen in recent months.”

The discounters are seeing renewed strong performance. Aldi recorded growth of 7.9% and Iceland is reaping the results of a push into convenience and aggressive promotions on staple items.

Netto however recorded a 2.2% decline, but it is expected to be bolstered by the takeover by Asda.


Viewpoint – Neil Morgan

Marketing Week

At the Omniture Summit last month, we hosted various streams of digital seminars and found that following analytics, conversion was the most popular. This focus on conversion is reflected in the survey, with a big move towards customer experience.