This month’s Homescan Tradetrak analysis confirms that, despite inconsistent weather during the 12 weeks to September 4 that is estimated by ACNielsen to have reduced topline growth in supermarkets by 1%, shoppers continue to spend more at retailers with a clear and differentiated offer.
Within the multiples, Tesco, Asda and the Morrisons fascia all have an increase in market share, with Tesco’s share of total till up from 26.4% to 28.9% in the last 12 months.
The co-operative societies are again growing market share, now at 6.8% and driven by the successful format developments at the Co-operative Group, which now has more than 10% of all convenience/impulse and high street sales [Scantrack].
Waitrose, with a national market share of 3.3%, will soon benefit from the first of its Morrisons conversions, having recently reported total sales up nearly 12% over the late summer period.
Somerfield continues to lose overall market share, which is 5.9% compared with 6.5% a year ago. As its recently reported like-for-likes indicated, the retention of customers and increasing their spend remains a challenge.
Iceland faces a similar agenda, judging by its recent loss of market share. The use of price to drive volumes remains a key part of its strategy.
As flagged up by its recent media campaign, 57% of all frozen sales by value were on promotion during the four weeks ending September 4.
Mike Watkins, manager of retailer services at ACNielsen, said: “Stealing shoppers and spend is as important for high street retailers as it is for out-of-town stores. It’s just that the promotional mechanic needs to be more focused and the reward more immediate as the average basket typically is under £15.
“Otherwise, there will be little net impact on long-term loyalty. Shoppers using stores between 3,000 sq ft and 10,000 sq ft are remarkably loyal if the range is correct, as the stores of choice are driven by location.”
With more than a third of all fmcg sales now in stores of up to 10,000 sq ft, it is the co-ops, Tesco and Sainsbury that are reshaping this retail landscape.
If the weather continues to influence retail spend over the few months, the attractive prospect of incremental sales growth from the high street may be an opportunity too good to miss for other supermarket chains.
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