Most food retailers have taken the windfall sales opportunities that Christmas offers. As ACNielsen has indicated since summer, there has been a momentum building within Tesco, Asda and latterly Morrisons that takes these retailers into 2004 with a leadership position.
The past fortnight’s trading has not changed how Homescan TradeTrak will report on the full Christmas period - the market place continues to consolidate in price position, shopping trip type and depth of range.
With Tesco, among others, suggesting next year will see lower, mid single digit growths across the estate, the search for and retention of the most profitable customers is high on the agenda. For Sainsbury, maintaining profitable market share at around 15% of all food sales is the challenge.
With the expected new Morrisons group not far behind with a projected 12% market share of all food sales (after disposals) but with underlying group sales and shopper penetration growing faster than Sainsbury, there will be clear blue water to the next retail format. And that is Somerfield which has less than 4% market share but is still a force in the high street.
Early indication from Homescan Total Till is that the range extensions implemented at Sainsbury ready for December may have helped bring the average spend back above £30 per visit [Source: Homescan 4 w/e Nov 29 2003]. Morrisons achieves around £28 per visit and once the Safeway integration is over the new Morrisons will have a multi-format offer to drive penetration and in a number of stores a more developed non-food offer that rivals Sainsbury’s.
In January there should be some interesting promotional campaigns, perhaps the first signs of how the competition intends to meet the new fourth force in grocery retailing.
The past fortnight’s trading has not changed how Homescan TradeTrak will report on the full Christmas period - the market place continues to consolidate in price position, shopping trip type and depth of range.
With Tesco, among others, suggesting next year will see lower, mid single digit growths across the estate, the search for and retention of the most profitable customers is high on the agenda. For Sainsbury, maintaining profitable market share at around 15% of all food sales is the challenge.
With the expected new Morrisons group not far behind with a projected 12% market share of all food sales (after disposals) but with underlying group sales and shopper penetration growing faster than Sainsbury, there will be clear blue water to the next retail format. And that is Somerfield which has less than 4% market share but is still a force in the high street.
Early indication from Homescan Total Till is that the range extensions implemented at Sainsbury ready for December may have helped bring the average spend back above £30 per visit [Source: Homescan 4 w/e Nov 29 2003]. Morrisons achieves around £28 per visit and once the Safeway integration is over the new Morrisons will have a multi-format offer to drive penetration and in a number of stores a more developed non-food offer that rivals Sainsbury’s.
In January there should be some interesting promotional campaigns, perhaps the first signs of how the competition intends to meet the new fourth force in grocery retailing.
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