Grocery Market Share UK - Tesco Continues to Feel the Heat as Iceland Does Well in the Cold

The latest grocery share figures from Kantar Worldpanel, published today for the 12 weeks ending 22 January 2012, show Tesco dropping in market share while Iceland puts in its strongest performance in 10 years.

The grocery market is growing at 4.2% per year which remains below the food inflation rate as shoppers continue to seek value for money.

Edward Garner, director at Kantar Worldpanel, explains: “There were mixed fortunes among the big four supermarkets this month. The completion of the Netto conversion has led to an all-time record performance for Asda, lifting its share from 16.9% a year ago to 17.5% now. Sainsbury’s has also grown its share to 16.7%, consolidating its strongest hold of the market since March 2003.

“In contrast, there is considerable pressure on Tesco, with its growth rate of 2.1% only half the total market average. This has caused its share to fall by 0.6 percentage points.

“Iceland’s 2.1% share is at its highest for 10 years as shoppers continue to manage down their spending. With bids for the chain closing today, these figures are promising for potential buyers and show the importance of a good value-for-money message in today’s grocery market.”

Elsewhere, Aldi and Lidl continue their strong run, both increasing their shares to 3.5% and 2.5% respectively. However, the disappearance of Netto means that the size of the total discount sector is relatively unchanged at 6%.

An update on inflation

Grocery inflation stands at 5.7%* for the 12 week period ending 22 January 2012. This is another decrease from the recent peak of 6.2% we reported for November last year and we expect to see further decreases during 2012.