Promotions Spur Growth In UK Grocery Sales

Promotions Spur Growth In UK Grocery Sales

UK grocery sales grew 5.1 percent in the 12 week period ended May 16th, largely due to the record number of products on promotion according to new research from Nielsen.  Morrisons continued the solid performance it has been exhibiting over the last few months with sales growth of 7.9 percent over the same period a year ago, while Asda and Sainsbury also posted gains of 7.4 percent and 7.3 percent, respectively.

“With a record of 32 percent of all sales being goods on offer in the four weeks to May 2009, retailers recognize that they need to show good value for money as a fundamental shift in consumer behavior has taken place over the past few months.  At face value, this will be good news for Asda, Tesco and the other discounters, but it is also an opportunity for all other retailers to get a bigger share of wallet of the recession-struck shopper,” said Mike Watkins, Senior Manager, Retailer Services at Nielsen.

% Share of Grocery market Spend, 12 Weeks Ending May 16, 2009

Retailer 12 w/e 5/17/08 12 w/e 5/16/09 Value Sales % Change
Tesco 28.1 28.0 4.8
Asda 15.2 15.6 7.4
Sainsbury 14.5 14.8 7.3
Morrisons 10.4 10.6 7.9
Co-op 6.2 6.1 2.5
Waitrose 3.5 3.5 4.0
M&S 3.7 3.7 3.6
Somerfield 3.6 3.2 -6.0
Iceland 1.6 1.8 13.0
Source: Nielsen Total Till, Nielsen Homescan