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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.
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