Underneath the hype, the Christmas announcements by the major grocers demonstrate tough trading conditions, with Tesco saying that like-for-like sales in the UK were up by just 0.6 per cent. The analysts will be having this in negative territory in no time.
The impact of Tesco’s investment in new space is a 3.6 per cent increase in sales yet Kantar Worldpanel figures show its market share remains unchanged at 30.5 per cent. The two sets of figures are not strictly aligned but local retailers can see the picture.
UK Grocery Market Share
- Tesco – 30.5%
- Asda – 16.8%
- Sainsbury’s – 16.6%
- Morrisons – 12.2%
Across at Sainsbury’s, which is doing well, the Kantar Worldpanel figures show it adding 0.3 per cent of market share to 16.6 per cent, just behind Asda on 16.8 per cent. However, its recently been reported that Sainsbury’s has moved into second following a fall in Asda’s market share to 16.5%.
The Tesco press release highlighted “Steady UK Performance” and Sainsbury’s trumpeted a “record Christmas performance”. Earlier, Morrisons had said that around 40 per cent of sales were on promotion and the average family was having to spend £10 a week more in petrol costs.
The Kantar Worldpanel figures show that independents grew sales fractionally behind the multiples but Ed Garner noted that the supermarkets’ baskets were filled with DVDs, toys and books. Grocery inflation remains at around 3 per cent, his data shows.
To benchmark your sales, add up what you sold in the final quarter of 2009 and add 3 per cent. Then compare this with what you sold in the final quarter of 2010. If you have a positive number, then you are doing very well. Remember to tell your suppliers you are doing well and keep it up.
Sunder
22/02/2011
Tesco’s are now on my back. Grocer mag which came out last week stated the top 100 hot spots for convenience stores, at which my store was rated 46 out of 37,000 stores. Oh why do mags print this info.
Nick Shanagher
24/02/2011
Hi Sunder,
Location, location, location, as Bill Sperring used to say. I am sure that Tesco already uses a similar planning model to site its stores and your high profile means you may already be in their cross hairs. What the model does not factor in is land prices and rents. Lots of Tesco Express outlets are operating on very tight budgets (hence they cannot afford to replace their broken windows). Looking at the list, I reckon that you are equal 43rd. If the economic model is as robust at they make out, then next year’s list will look remarkably similar. It does not take into account the added value of a great shopkeeper and his team!
Nick