Tesco rings up growth in market share

Published on Tuesday 10 November 2009 20:25

RETAIL giant Tesco has seen its first growth in market share in almost two years, figures out yesterday showed.

The UK's number one supermarket, which has reaped the benefit of its double Clubcard points promotion, took 30.7 per cent of the grocery market in the 12 weeks to 1 November, research firm TNS Worldpanel said.

This is ahead of the 30.6 per cent recorded a year earlier and the first time Tesco has shown growth in market share since the end of 2007, TNS said.

Tesco continued to lag its main rivals over the 12-week period. However, analysts said data from the last four weeks put Tesco ahead of J Sainsbury.

Tesco is fighting back against competitors who have chipped away at the retail behemoth in the past year. The firm's 4.7 per cent till roll growth was also ahead of the 4.4 per cent in the wider market.

Among its main rivals, Morrisons showed the fastest growth – up 8.5 per cent – as it ratchets up expansion plans and consolidates stores bought from the Co-operative group following its takeover of Somerfield.

Asda, which is owned by US giant Wal-Mart, consolidated its position as the UK number two with a market share of 17.3 per cent in the 12 weeks to November, while Sainsbury's is in third place with 15.9 per cent.

Meanwhile, the growth spurt enjoyed by discount chains Aldi, Netto and Lidl has faded as food price inflation eases. Their combined share of the market remained steady at 6.1 per cent year on year, TNS said.

Grocery price inflation fell for the eighth successive 12-week period to 3.2 per cent.

Waitrose has also tempted back customers deterred by high prices a year ago, showing a 12.3 per cent increase in till roll takings against 12 months earlier. This lifted its market share from 3.7 per cent to 4 per cent.