FDBusiness.com

The latest grocery share figures from Kantar Worldpanel UK, for the 12 weeks ending 20 January, show Tesco maintaining its market share and matching market growth for the first time since June 2011.

Edward Garner, director at Kantar Worldpanel, explains: “These positive results are a sign of stabilisation for Tesco as the retailer gets back on track with its customers. However, this improvement has put some pressure on the rest of the big four with Morrisons in particular suffering a drop in sales and a share decline of 0.6 percentage points in the latest period.”

The strongest growth recorded during this latest period is at the discount and premium ends of the market. The Waitrose figures echo the record Christmas it reported, with strong year-on-year growth of 8%.

Meanwhile, the discount outlets, and Aldi in particular, lead the way in the first stage of 2013 – strongly out-performing the market with growth rates of 28.2% for Aldi and 10% for Lidl. Iceland holds on to the record 2.2% share reported last period.

Edward Garner continues: “It is worth noting the improved performance from The Co-operative this month, with the retailer recording a sales increase of 0.9%. This growth contrasts with the declines posted throughout 2012 and could be a positive step for the grocer.”

The widening gap between market growth, currently at 3.3%, and grocery price inflation (4.9%) is causing a squeeze on shopping budgets. As a result, there is a heightened need for retailers to deliver value for money to customers.

Grocery inflation stands at 4.9% for the 12 week period ending 20 January 2013. This is an increase on the 4.5% reported last period and continues a rising trend since September last year.