Could Sainsbury’s focus on its new non-food range be causing a distraction for its food offering? This month’s TradeTrak survey from ACNielsen suggests the multiple may have taken its eye off the ball when it comes to food as its market share of grocery purchases continues to fall.
This month Sainsbury launched its new homeware range and unveiled plans to roll out the whole of its new non-food range, which will include a revamped clothing offer and a new kids’ range, over the next two months.
But its share of the grocery market as measured by TradeTrak, which excludes non-food other than household, petcare and toiletries, fell by 0.8% year-on-year to 15.2% for the quarter ending September 6.
Tesco has had no such problems with its introduction of new non-food ranges while continuing to grow its food offering. The latest TradeTrak figures mirror Tesco’s half-year results, which were unveiled last week. Total UK sales at Tesco grew by 14.2%, or 6.3% on a like-for-like basis, to hit the £12bn mark. Its share of the grocery sector rose 0.8% year-on-year to 23.5% for the 12 weeks ending September 6.
Meanwhile Asda continues to close the gap on Sainsbury with its market share growing by 0.3% year-on-year for the same period to 13.8%.
ACNielsen’s retail services manager Mike Watkins believes Tesco and Asda will continue to increase their shares of the grocery market. “Tesco and Asda had very good summer trading - better than usual - and now have a momentum that will be difficult to halt. Expect another market beating food sales performance from these two retailers in the run-up to Christmas.”
Kwik Save’s share fell from 2.8% this time last year to 2.5%. Earlier this month it posted a drop in first quarter like-for-like sales of 1.5%.
This month Sainsbury launched its new homeware range and unveiled plans to roll out the whole of its new non-food range, which will include a revamped clothing offer and a new kids’ range, over the next two months.
But its share of the grocery market as measured by TradeTrak, which excludes non-food other than household, petcare and toiletries, fell by 0.8% year-on-year to 15.2% for the quarter ending September 6.
Tesco has had no such problems with its introduction of new non-food ranges while continuing to grow its food offering. The latest TradeTrak figures mirror Tesco’s half-year results, which were unveiled last week. Total UK sales at Tesco grew by 14.2%, or 6.3% on a like-for-like basis, to hit the £12bn mark. Its share of the grocery sector rose 0.8% year-on-year to 23.5% for the 12 weeks ending September 6.
Meanwhile Asda continues to close the gap on Sainsbury with its market share growing by 0.3% year-on-year for the same period to 13.8%.
ACNielsen’s retail services manager Mike Watkins believes Tesco and Asda will continue to increase their shares of the grocery market. “Tesco and Asda had very good summer trading - better than usual - and now have a momentum that will be difficult to halt. Expect another market beating food sales performance from these two retailers in the run-up to Christmas.”
Kwik Save’s share fell from 2.8% this time last year to 2.5%. Earlier this month it posted a drop in first quarter like-for-like sales of 1.5%.
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