Morrisons increases market share as fightback continues

The figures from Kantar Worldpanel reveal that Morrisons’ growth has continued as Aldi and Lidl show no signs of slowing down.

The latest grocery share figures, published today for the 12 weeks ending June 21 2015, show the overall grocery market slipping back into decline with 0.1 per cent less going through the tills compared to last year. However, against this backdrop, some individual supermarkets have shown growth.

Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said: “Morrisons has seen the largest sales increase among the ‘big four’ retailers for the second month in a row, recording a sales growth of 0.6 per cent, which has been supported by an increase in online shopping. Continuing to grow ahead of the market, the retailer has increased its market share to 11.0 per cent, up 0.1 percentage points compared with a year ago. While only a small increase against a weak 2014, this does represent the first market share gains made by Morrisons since December 2011.

“Last seen in November, the return to marginal decline across the grocery market reflects both falling prices and only steady volume growth. Sales volumes are up two per cent compared to a year ago but are not anticipated to accelerate, even with an improving economy, as demand for groceries has remained broadly steady since before the recession.”

Groceries are now 1.7 per cent cheaper compared with a year ago. Prices have been falling since September 2014, but the rate of decline is slowing meaning they are projected to rise again by the end of this year.

Sales fell by 1.3 per cent at both Tesco and Sainsbury’s. This took market share down to 28.6 per cent and 16.5 per cent respectively, a decrease of 0.3 and 0.2 percentage points. At Asda sales were down by 3.5 per cent, leaving the retailer with a 16.5 per cent share, compared with 17.1 per cent last year. In contrast at the Co-operative sales were flat, but were ahead of the market for the first time in nearly four years. Helped in part by more shoppers visiting the stores, the retailer’s market share held steady at 6.2 per cent.

Aldi and Lidl showed no signs of slowing down and are continuing to take share away from the competition. The two discounters increased their sales by 15.4 per cent and 9.1 per cent respectively. Aldi reached a new high with a 5.5 per cent share of the market while Lidl, also showing continued growth, rose to 3.9 per cent. Waitrose also grew ahead of the market, with sales increasing by 1.2 per cent, moving to a 5.1 per cent share.