While the seasonal sales uplifts in April have been slower than expected for many high street retailers, this month’s Tradetrak shows that Tesco and Asda have both benefited from good trading over the 12 weeks to April 16, which includes the impact of the early Easter.
All food retailers have been affected by Tesco’s growth, but there is some good news for Asda. Despite a 0.3% lower share than this time last year, market share has grown since mid-January from 16.8% to 17.1% on Homescan Total Till. And in the four weeks to April 16, Asda was the only one of the top four to increase share during Easter.
Morrisons’ share has fallen by 2.7% over the 12 months since acquiring Safeway and market share hit an all-time low of 12% in the four weeks to April 16. However, with close to 50% of all stores now branded as Morrisons, this share should be considered the new benchmark from which to assess growth and long-term recovery of Morrisons.
The Co-operative retailers have also struggled to hold share over the past 12 months, with market share falling to 6.2%. The recent trading results from The Co-operative Group show how difficult it is for food retailers to generate like-for-like growth following acquisition and the completion of format conversion.
However, beneath the headline figures there are opportunities. Shoppers at Co-op stores are now spending as much per month as those visiting Somerfield, in the region of £55 on food and drink brought into the home. Twice as many visits are being made to Co-op stores than to Somerfield, so with the correct format, range and prices, there is potential for The Co-operative Group to grow faster than Somerfield.
Mike Watkins, manager of retailer services at ACNielsen, comments: “This is because the underlying consumer trend is for shoppers to use a greater number and a wider variety of food shops, and this benefits those convenience retailers with a high frequency of visit (such as The Co-operative Group) as much as it helps retailers with high-shopper penetration and a multi-format strategy such as Tesco and Sainsbury.”
He adds: “The ShopperTrends research from ACNielsen confirms that the UK consumer expects to find everything they need in one store… For limited range discounters, such as Aldi, Lidl and Netto, a wider range could be a springboard for growth.”
All food retailers have been affected by Tesco’s growth, but there is some good news for Asda. Despite a 0.3% lower share than this time last year, market share has grown since mid-January from 16.8% to 17.1% on Homescan Total Till. And in the four weeks to April 16, Asda was the only one of the top four to increase share during Easter.
Morrisons’ share has fallen by 2.7% over the 12 months since acquiring Safeway and market share hit an all-time low of 12% in the four weeks to April 16. However, with close to 50% of all stores now branded as Morrisons, this share should be considered the new benchmark from which to assess growth and long-term recovery of Morrisons.
The Co-operative retailers have also struggled to hold share over the past 12 months, with market share falling to 6.2%. The recent trading results from The Co-operative Group show how difficult it is for food retailers to generate like-for-like growth following acquisition and the completion of format conversion.
However, beneath the headline figures there are opportunities. Shoppers at Co-op stores are now spending as much per month as those visiting Somerfield, in the region of £55 on food and drink brought into the home. Twice as many visits are being made to Co-op stores than to Somerfield, so with the correct format, range and prices, there is potential for The Co-operative Group to grow faster than Somerfield.
Mike Watkins, manager of retailer services at ACNielsen, comments: “This is because the underlying consumer trend is for shoppers to use a greater number and a wider variety of food shops, and this benefits those convenience retailers with a high frequency of visit (such as The Co-operative Group) as much as it helps retailers with high-shopper penetration and a multi-format strategy such as Tesco and Sainsbury.”
He adds: “The ShopperTrends research from ACNielsen confirms that the UK consumer expects to find everything they need in one store… For limited range discounters, such as Aldi, Lidl and Netto, a wider range could be a springboard for growth.”
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