End to recessionary buying behaviour in sight
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The supermarkets could soon see an end to recessionary buying behaviour, according to TNS Worldpanel.
Its most recent grocery market share figures show that premium ranges such as Tesco Finest are in growth, while the discounters including Aldi, Lidl and Netto, show no year-on-year share growth for the 12 weeks to 29 November.
The trend is in contrast to the same period last year during which Aldi recorded 25% growth.
Edward Garner, communications director at TNS Worldpanel, says: “The market is seeing several signs that indicate that an end to the recessionary buying behaviour that has characterised the last year is imminent.”
Asda, Sainsbury’s and Morrisons all added market share during the period while Tesco’s share remains flat.
Morrisons achieved record market share of 12.1% growing at twice the market average.
Today, Tesco posted a sales increase of 5.7% in third quarter results with like for like sales up 2.8% as the supermarket gears up for Christmas.
The supermarket also cut prices on more than 200 products in its Finest range in a bid to compete with upmarket rivals.
Readers' comments (1)
Danielle Pinnington, Managing Director, Shoppercen | Wed, 9 Dec 2009 9:23 am
We're still seeing signs of cautious buying behaviour. There is definitely some cutting back going on in terms of presents. As with last year shoppers are looking to reduce the number of people they buy for, or finding alternatives – so they might suggest a girls night out instead of buying individual presents for the girls, or a day trip with kids for the NCT class. We’re also hearing shoppers talk about downsizing what they buy, so agreeing as a family to only buy token presents for adult siblings, to enable them to concentrate spend on the children.
Further signs of prudence are emerging in terms of grandparents talking about buying clothes for grandchildren instead of toys, as they feel the clothes would be a better use of money at this time.
Promotions are the big news for shoppers, they see plenty of evidence of stores using pricing and promotions to ‘win the Christmas battle’, and they are happy to take advantage of these.
Overall the sentiment appears to be that shoppers are being careful – so making the most of promotions when they see them – but at the same time they don’t want the economic situation to undermine the magic of Christmas. Christmas is the one shared celebration of the year, and a chance to forget all the recent problems, so shoppers will be making the most of what money they have to make sure they and their families have a good Christmas. It’s about being a smart shopper rather than being Scrooge.
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