Press information Peter Rogers/Alyona Levitin Camargue 020 7636 7366 progers@camarguepr.com/ alevitin@camarguepr.com 10 March 2015 PRICE WAR DRIVES GROCERY DEFLATION TO RECORD LOW The latest grocery share figures from Kantar Worldpanel, published today for the 12 weeks ending 1 March 2015, show that deflation has reached a new low of -1.6% as price competition between the supermarkets continues to impact the market. Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, explains: “A combination of lower general inflation and the grocery price war has saved shoppers £400 million in the past 12 weeks, with deflation driven to a record low of -1.6%. All of the major supermarkets are cutting prices to win shoppers, especially within everyday staples such as eggs, vegetables and milk. Retailers are focusing their efforts on simple price cuts rather than complicated ‘multibuy’ deals. “Among the big four supermarkets Tesco has been the standout retailer. It has posted its strongest performance in 18 months with sales up 1.1% compared with a difficult 2014. Increasing sales have helped Tesco arrest its falling market share, which is down just 0.1 percentage point compared with last year. This resurgence has impacted Asda which competes for many of the same shoppers as Tesco. Asda’s sales are down by 2.1%, taking its market share to 17.0%. Morrisons and Sainsbury’s both grew behind the market average with sales falling by 0.4% and 0.5% respectively.” Aldi has continued to grow well ahead of the market with sales up 19.3% compared with a year ago. This is Aldi’s slowest rate of growth since June 2011, but it was enough to take the discount retailer to a new record market share of 5.0%. Fellow German supermarket Lidl also performed well, with growth of 13.6% increasing share to 3.5%. Sales at Waitrose increased by 4.9% in the latest period. The premium grocer is selling more products on promotion than it has done historically, in an effort to be more price competitive. Waitrose’s market share has remained at its highest level with 5.2%, up 0.2 percentage points. Ends An update on inflation Grocery inflation has seen its 18th successive fall and now stands at -1.6%* for the 12 week period ending 1 March 2015. This means shoppers are now paying less for a representative basket of groceries than they did in 2014. This is another record low since Kantar Worldpanel began recording GPI in October 2006 and reflects the impact of Aldi and Lidl and the market’s competitive response, as well as deflation in some major categories including vegetables, milk and bread. *This figure is based on over 75,000 identical products compared year-on-year in the proportions purchased by shoppers and therefore represents the most authoritative figure currently available. It is a ‘pure’ inflation measure in that shopping behaviour is held constant between the two comparison periods – shoppers are likely to achieve a lower personal inflation rate if they trade down or seek out more offers. Kantar Worldpanel has launched a new data visualisation tool that allows you to view and analyse Grocery Market Share data online. The latest sales share figures for all of the major grocers can be viewed and compared with historical figures here and all graphics within the Kantar Worldpanel dataviz are available to embed in your site. (Optimal viewing in recent versions of Internet Explorer or Chrome) MARKET SHARE - TOTAL TILL ROLL Includes all expenditure through main store tills and excludes petrol & instore concessions Total Till Roll - GB Consumer Spend 12 Weeks to 02 March 2014 £millions Total Grocers % ** 12 Weeks to 01 March 2015 £millions % Change % ** % 26,115 100.0% 26,407 100.0% 1.1% 25,586 98.0% 25,890 98.0% 1.2% Tesco 7,512 28.8% 7,591 28.7% 1.1% Asda 4,572 17.5% 4,477 17.0% -2.1% Sainsbury's 4,452 17.0% 4,429 16.8% -0.5% Morrisons 2,909 11.1% 2,899 11.0% -0.4% The Co-operative 1,589 6.1% 1,555 5.9% -2.1% Waitrose 1,318 5.0% 1,383 5.2% 4.9% Aldi 1,113 4.3% 1,327 5.0% 19.3% Lidl 817 3.1% 928 3.5% 13.6% Iceland 577 2.2% 574 2.2% -0.5% Other Multiples 727 2.8% 726 2.8% -0.1% 529 2.0% 517 2.0% -2.2% Total Multiples Symbols & Independents ** = Percentage Share of Total Grocers Follow us on Twitter at http://twitter.com/#!/KWP_UK and join the debate #kwpmarketshare. Notes to editors Please note that four week ending or six week ending retailer share data should not be used in media reporting. We would recommend that you use the 12 week ending data stated in this release, as it covers a longer time period which means it is a superior indicator of retailer performances and trends. For all publicly-quoted Worldpanel data, users of our research (including media) must ensure that data is sourced Kantar Worldpanel. These findings are based on Kantar Worldpanel data for the 12 weeks to 1 March 2015. Kantar Worldpanel monitors the household grocery purchasing habits of 30,000 demographically representative households in Great Britain. All data discussed in the above announcement is based on the value of items being bought by these consumers, Kantar Worldpanel will only support data that is published in the context we have presented it and our own interpretation of these findings. We cannot be held responsible for any other interpretation of these findings. For further information, please contact: Peter Rogers/Alyona Levitin Camargue +44 (0) 20 7636 7366 progers@camarguepr.com/alevitin@camarguepr.com About Kantar Worldpanel Kantar Worldpanel is the world leader in consumer knowledge and insights based on continuous consumer panels. Its High Definition Inspiration™ approach combines market monitoring, advanced analytics and tailored market research solutions that inspire successful actions by its clients. Kantar Worldpanel’s expertise about what people buy or use – and why – is recognised by brand owners, retailers, market analysts and government organisations globally. With over 60 years’ experience, a team of 3,500, and services covering 60 countries directly or through partners, Kantar Worldpanel helps brands grow in fields as diverse as FMCG, impulse products, fashion, baby, telecommunications and entertainment, among many others. For further information, please visit us at www.kantarworldpanel.com. Twitter: Google+: LinkedIn: RSS: Newsletter: About Kantar Kantar is the data investment management division of WPP and one of the world's largest insight, information and consultancy groups. By connecting the diverse talents of its 12 specialist companies, the group aims to become the pre-eminent provider of compelling and inspirational insights for the global business community. Its 30,000 employees work across 100 countries and across the whole spectrum of research and consultancy disciplines, enabling the group to offer clients business insights at every point of the consumer cycle. The group’s services are employed by over half of the Fortune Top 500 companies. For further information, please visit us at www.kantar.com Twitter: Facebook: Google +: LinkedIn