Only UK's Sainsbury's and Waitrose holding off discounters - Kantar

Tue Oct 22, 2013 7:37am EDT

LONDON, Oct 22 (Reuters) - J Sainsbury and John
Lewis's Waitrose are the only Top Six British grocery
chains currently resisting pressure from discounters Aldi
 and Lidl to expand their market share,
monthly industry data showed on Tuesday.
    Though data and surveys have indicated the outlook is
improving for UK consumer spending, retailers are generally
still wary as inflation continues to outpace wage rises.
    In recent weeks, store groups including market leader Tesco
 and No. 3 Sainsbury's, have highlighted the
fact that consumers' disposable income is still
falling.  
    Sainsbury's and Waitrose, the UK's No. 5 grocer,
outperformed the market with year-on-year sales growth of 3.7
percent and 7.6 percent respectively in the 12 weeks to Oct. 13,
narrowly expanding their market share, researcher Kantar
Worldpanel said.
    However, their growth was dwarfed by a 31.7 percent sales
rise at Aldi, which gave it a record market share of 3.8 percent
against 3.0 percent a year earlier.
    Aldi more than doubled its profit in its UK business in
2012, as it attracted 1 million more shoppers and got existing
customers to spend more. 
    "The retailer has done a particularly good job in conveying
its competitive pricing message through its 'Like Brands Only
Cheaper' and subsequent 'Swap and Save' campaigns - both of
which have given the supermarket a clear point of difference,"
said Kantar director Edward Garner.
    Lidl also kept up its strong run with sales growth of 13.1
percent and a market share of 3.0 percent, up from 2.7 percent.
    The trend for higher- and lower-end chains to gain at the
expense of the middle ground was clear as the No. 1, 2 and 4
grocery chains by sales - Tesco, Wal-Mart's Asda and
Morrisons - all recording sales growth of 1.0 percent or less,
against a 3.0 percent market average.
    Last month, Tesco reported flat underlying sales for its
second quarter, while Sainsbury's posted a second quarter rise
of 2.0 percent, albeit for a different period.
  
    Kantar said grocery inflation remained at 4.2 percent for
the 12 week period.
    
    Market share (percent)
                  12 weeks to   12 weeks to   pct change
                  Oct 13, 2013  Oct 14, 2012  in sales
 Tesco            30.1          30.8          0.4
 Asda             17.2          17.6          1.0
 Sainsbury        16.7          16.6          3.7
 Morrison         11.2          11.4          1.0
 Co-operative     6.4           6.7           -1.2
 Waitrose         4.9           4.7           7.6
 Aldi             3.8           3.0           31.7
 Lidl             3.0           2.7           13.1
 Iceland          2.0           2.0           2.3