Britain's grocery market polarisation intensifies - Kantar

Tue Jun 18, 2013 7:20am EDT

LONDON, June 18 (Reuters) - Discount retailers Aldi and Lidl
and higher-end Waitrose are taking more business away from
Britain's so-called "Big Four" grocers, as the market's
polarisation intensifies, monthly industry data showed on
Tuesday.
    Market researcher Kantar Worldpanel said Aldi 
scored another all-time record share of 3.6 percent in the 12
weeks to June 9, while Lidl and Waitrose 
both held on to record shares from May of 3.0 percent and 4.9
percent respectively.
    Market leader Tesco, No. 2 player Asda and
No. 4 Wm Morrison all saw their share dip.
    Only No. 3 J Sainsbury bucked the trend, raising
its share to 16.7 percent with sales growth of 3.5 percent,
ahead of overall market growth of 3.0 percent.
    "The continuing polarisation of the grocery market poses a
difficult question for the big four retailers - how to make
their offer appealing in an increasingly squeezed market," said
Kantar analyst Fraser McKevitt.
    "Asda recently announced it is going toe-to-toe with Aldi on
the price of fresh food and produce, demonstrating its growing
concern with the threat from the discounter."
    Earlier this month Tesco reported a first-quarter
like-for-like sales fall of 1 percent, while Sainsbury posted a
0.8 percent rise.  
    Last month Morrisons reported a first quarter decline of 1.8
percent, while Asda posted a 1.3 percent rise. 
 
    All four updates were, however, for slightly different time
periods.
    Kantar said grocery inflation for the 12 week period was 3.9
percent.

    Following is a summary of market share and sales.

    Market share (percent)
                  12 wks to     12 wks to     pct change
                  June 9 2013   June 10 2012  in sales
 Tesco            30.5          31.0          1.3
 Asda             16.9          17.2          1.1
 Sainsbury        16.7          16.6          3.5
 Morrison         11.6          11.8          1.2
 Co-operative     6.3           6.5           -1.3
 Waitrose         4.9           4.6           10.4
 Aldi             3.6           2.8           29.9
 Lidl             3.0           2.8           8.5
 Iceland          2.0           2.0           5.2