Tesco grows at fastest rate in three years whilst growth of discounters hits five-year low | Progresiv

The latest grocery share figures from Kantar Worldpanel for the 12 weeks ending 6 November reveal a second month of good news for Tesco, which grew at its fastest rate in three years.  Meanwhile, sales growth at Aldi and Lidl hit its lowest level since 2011 as the big four continued their battle to win back customers.

Tesco’s growth of 2.2% was well ahead of the overall market, where year-on-year sales increased by 0.8% for the second consecutive month. This is a considerable improvement on the numbers it has delivered over the last couple of years and led to its market share growing for the second consecutive month having last month risen for the first time since 2011.

Commenting on Tesco’s performance, Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said: “Branded sales did see an increase but most of the gains were made through its own label products, both at the cheaper and more premium ends of the price spectrum. Tesco’s Farm Brands continue to benefit from sales growth in fruit and vegetables, while the premium Tesco Finest range has grown by 6% in the past 12 weeks, notably in crisps, fresh meat and chilled convenience. Much of Tesco’s growth has come from more affluent shoppers returning to the store, and average spend per trip is up by 2.1% to 20.69 pounds.”

Meanwhile, sales at Sainsbury’s declined by 0.7%, contributing to a 0.3 percentage point fall in market share to 16.3%. Asda’s rate of decline slowed slightly to 5%, though increased sales in its premium own label lines were a bright spot for the struggling chain. Morrisons too saw a boost in premium own label thanks to its ‘The Best’ line, although total sales fell by 2.4% in line with the context of a smaller store estate.

With big four focused on price cuts and improving their offer to win back customers, growth of the discount retailers fell to its lowest rate since 2011. However, both Aldi and Lidl are still attracting new shoppers, helped by continuing store openings. Aldi grew sales by 10.2%, with 547,000 more shoppers visiting over the 12 weeks – a bigger increase in visitor numbers than any other retailer. Lidl’s sales increased by 6.1% – a slower rate than in recent months but still significantly faster than the overall market. (www.kamcity.com)