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Big four supermarkets squeezed by high-end and discount competitors Big four supermarkets squeezed by high-end and discount competitors
(35 minutes later)
The big four supermarkets are feeling the squeeze from their discount and high-end competitors as Tesco, Asda and Morrisons all lost customers.The big four supermarkets are feeling the squeeze from their discount and high-end competitors as Tesco, Asda and Morrisons all lost customers.
Waitrose, Aldi and Lidl now account for a record 11.5% of the total grocery market according to data from Kantar Worldpanel.Waitrose, Aldi and Lidl now account for a record 11.5% of the total grocery market according to data from Kantar Worldpanel.
Market share at Sainsbury's, the UK's third biggest food retailer, remained flat following months of growth that had pushed it close to overtaking rival Asda, Market share at Sainsbury's, the UK's third biggest food retailer, remained flat following months of growth that had pushed it close to overtaking its rival Asda.
Morrisons, the fourth biggest supermarket chain, saw its share fall to 11.7% from 11.9% at the same point last year. However, it did see an overall 1.8% increase in takings in the 12 weeks to July 7 compared with the same period last year, due to inflation. Morrisons, the fourth biggest supermarket chain, saw its share fall to 11.7% from 11.9% at the same point last year. However, it did see an overall 1.8% increase in takings in the 12 weeks to 7 July compared with the same period last year, due to inflation.
This was a better performance than in recent months, when Morrisons was hit by its lack of an online delivery service and convenience stores.This was a better performance than in recent months, when Morrisons was hit by its lack of an online delivery service and convenience stores.
Tesco and Asda both appear to have put the horsemeat scandal behind them, recovering from market share dips earlier in the year.Tesco and Asda both appear to have put the horsemeat scandal behind them, recovering from market share dips earlier in the year.
Tesco's market share is 30.1%, down from 30.7% last year, and Asda's is 17%, down from 17.3%. It fell below 30% in the wake of the horsemeat scandal, while Asda moved below 17% at one stage.Tesco's market share is 30.1%, down from 30.7% last year, and Asda's is 17%, down from 17.3%. It fell below 30% in the wake of the horsemeat scandal, while Asda moved below 17% at one stage.
A report by the environment, food and rural affairs committee on Tuesday said retailers must carry out more testing to avoid future scandals.A report by the environment, food and rural affairs committee on Tuesday said retailers must carry out more testing to avoid future scandals.
With the big retailers fighting over the middle ground, discounters Aldi and Lidl stormed ahead, expanding their market share to 3.6% and 3.1%. Both had a market share of 2.9% last July. Waitrose rose from 4.5% to 4.8%.With the big retailers fighting over the middle ground, discounters Aldi and Lidl stormed ahead, expanding their market share to 3.6% and 3.1%. Both had a market share of 2.9% last July. Waitrose rose from 4.5% to 4.8%.
Edward Garner, director of Kantar Worldpanel, explained: "This trend has cut deeply into the available market share for the bigger retailers who are now having to compete for a contracting middle ground."Edward Garner, director of Kantar Worldpanel, explained: "This trend has cut deeply into the available market share for the bigger retailers who are now having to compete for a contracting middle ground."
He added that price match promotions by supermarkets has meant fewer customers are choosing to shop around, believing branded prices are the same across each store. He added that price match promotions by supermarkets had meant fewer customers were choosing to shop around, believing branded prices were the same across each store.
It has led to an increase in own label sales – Sainsbury's recently revealed sales of its Taste the Difference range rose 10% last year. That has led to an increase in own-label sales – Sainsbury's recently revealed sales of its Taste the Difference range rose 10% last year.
Garner said: "We are seeing an increased focus on quality. Both Tesco Finest and Sainsbury's Taste the Difference ranges are now growing strongly and Aldi's Like Brands Only Cheaper campaign and Lidl's Taste Test are positioning their private products as direct competitors to major brands."Garner said: "We are seeing an increased focus on quality. Both Tesco Finest and Sainsbury's Taste the Difference ranges are now growing strongly and Aldi's Like Brands Only Cheaper campaign and Lidl's Taste Test are positioning their private products as direct competitors to major brands."