Sun shines on Co-op and grocery brands

The growth of branded products has outstripped that of own-label lines for the first time since May 2015 according to the latest grocery market share figures from Kantar Worldpanel, published today for the 12 weeks to 12 August 2018.  Heavily branded categories performed particularly well over the hot summer months, helping branded growth of 3.9% overtake that of total own label.  This compares to total grocery market growth of 3.5%. 

Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, commented: “Consumers’ willingness to spend that little bit extra to fully enjoy the summer sunshine has helped push brands ahead of their own-label counterparts.  At Tesco and Sainsbury’s branded growth has outstripped own-label for a while and – as the two biggest retailers in the grocery market – this has contributed to the market shift.  More expensive premium own-label lines across the market are still growing strongly though – up 6.3%. 

Co-op continued to feel the summer glow, experiencing its fastest rate of growth in nearly seven years. McKevitt said: “The last time Co-op saw sales growth of 7.8% it was still benefiting from the acquisition of Somerfield, so its performance is particularly notable this period.  Consumers’ current preference to shop locally when the sun is shining has helped Co-op attract an additional 263,000 new shoppers through its doors.  The retailer also saw the average customer visit 22 times over the 12-week period, contributing to a market share increase of 0.3 percentage points to 6.6%.

“With growth up 2.7%, Morrisons regained its position as the fastest-growing of the big four supermarkets.  Over the past 12 weeks Morrisons cut back on promotions and also gained 231,000 new shoppers, 66% of which were more affluent ABC1 customers.”

Experiencing growth of 2.6% – the second-strongest growth of the big four – Asda’s market share dropped by 0.1 percentage points to 15.2%.  McKevitt said: “Asda has bucked the trend when it comes to brands versus own labels.  Its private lines grew ahead of brands – both its standard-tier range and premium ‘Extra Special’ range experienced a sales increase of 8%.  Over the past 12 weeks two-thirds of Asda’s growth came from family households.”

Tesco saw strong growth from its Express convenience stores and increased total sales by 1.8%, though the retailer’s market share dropped by 0.5 percentage points to 27.4%.  Meanwhile, Sainsbury’s experienced its fastest rate of growth since January 2018, up 1.2%.  The grocer was boosted by a strong online performance and the growth of its premium ‘Taste the Difference’ range.  Sainsbury’s market share declined by 0.4 percentage points to 15.5%.

McKevitt said: “Aldi witnessed double-digit growth of 12.6%, helping the retailer up its share of the market to 7.6% – a 0.6 percentage point increase on this time last year.  Over half of the retailer’s growth came from the fresh and chilled aisles, with meat, dairy and ready meals performing particularly well.  At Lidl, sales jumped by 8.6% to help the retailer secure a 5.5% share of the market.  The grocer’s premium own-label sales rose by nearly a third, while sales of branded products increased by 37%.”

Sales at Iceland rose by 3.8% to hold market share of 2.1%.  Over three-quarters of Iceland’s growth came from fresh and ambient food and drink and these sectors accounted for over half of the retailer’s sales.  Despite experiencing sales growth of 2.4%, Waitrose dropped market share by 0.1 percentage points to 5.0%.  E-commerce specialist Ocado achieved sales growth of 8.5% and increased market share by 0.1 percentage points to 1.2%.

Total Till Roll – Consumer Spend 12 weeks ending
13 August 2017
Share 12 weeks ending
12 August 2018
Share Change
£M %* £M %* %
Total Grocers 25,966 100.0 26,872 100.0 3.5%
Total Multiples 25,464 98.1 26,399 98.2 3.7%
Tesco 7,240 27.9 7,369 27.4 1.8%
Sainsbury’s 4,121 15.9 4,171 15.5 1.2%
Asda 3,977 15.3 4,081 15.2 2.6%
Morrisons 2,710 10.4 2,782 10.4 2.7%
Aldi 1,813 7.0 2,041 7.6 12.6%
Co-op 1,645 6.3 1,773 6.6 7.8%
Lidl 1,350 5.2 1,466 5.5 8.6%
Waitrose 1,317 5.1 1,349 5.0 2.4%
Iceland 550 2.1 571 2.1 3.8%
Ocado 292 1.1 317 1.2 8.5%
Other Multiples 450 1.7 479 1.8 6.4%
Symbols & Independents 502 1.9 473 1.8 -5.7%

 

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