Sainsbury is showing a slip in share to 15.9% after the modest rebound it achieved three months ago. At this time of year the seasonal non-food ranges of Asda and Tesco give added growth to stores sales which can be gauged by their average spend per customer.
Each is growing faster than the average spend at Sainsbury and, in value terms, has been as high as £14 above Sainsbury’s figure in the past four weeks.
Safeway’s market share has dropped to 8.5% in the 12 weeks to May 15 compared with 9.8% a year ago and the most recent penetration figure has fallen to 23.5% of shoppers visiting every four weeks compared with 25.1% last year.
At Morrisons’ recent agm, the company recognised that eight weeks of ownership was not enough to produce a sales uplift. One reason could be the immense scale of the changes that must be implemented progressively over a number of months. There are more than 10,000 item reductions across the chain.
Another reason could be that the full impact on trolley spend will only be seen when the first real conversions happen later this year, bringing the complete Morrisons’ proposition to new locations.
While the top four supermarkets dominate out of town shopping, the market leader in convenience retailing continues to grow sales and profit. The co-operative movement has announced its biggest trading improvement since the 1960s and, on the Homescan Total Till measure, the 42 consumer-owned co-operative societies show a combined market share of 6.6%. This is a drop of 0.3% in the past 12 months as the multiples roll out convenience formats.
A quarter of all households in the UK regularly use a Co-op store for food shopping and Mike Watkins, manager of retailer services at ACNielsen, says: “The strength of the co-operative retailers is their understanding of the local community and the needs of high street shoppers seeking a wider grocery range alongside a contemporary fresh foods offer…something Tesco also recognises in the recent Express conversions”.
He goes on to say: “With more than a third of visits to the Co-op producing a basket spend of between £5 and £15, there is a lot of scope for the Co-operative Group in particular to be the retailer of choice for top-up.”
Increasing shopper penetration and average spend remains a challenge for all retailers in the £100bn a year market.