Top three UK supermarkets increase market share

The UK's top three supermarket chains all increased their share of the market in a buoyant three months for the sector, new figures showed today.

Asda, Sainsbury's and Tesco were the big winners with year-on-year gains outstripping the 5% sales growth seen across the grocery market as a whole, according to the latest data from TNS Worldpanel.

The big three have claimed an extra 1.6% share of the overall grocery market between them since last year, the market research group said.

Asda, owned by US giant Wal-Mart, saw year-on year sales growth of 9%, posting sales of £3.17bn (€4.68bn) for the 12 weeks to March, while private equity bid target Sainsbury's recorded 8% growth over the same period.

Tesco - the UK's number one retailer - saw sales grow 7% to £5.84bn (€8.63bn). The supermarket giant had a 31.2% share of the grocery market in the 12 weeks to March 25, compared with 30.6% last year.

Edward Garnier, director of research at TNS Worldpanel, said: "The latest figures again show the buoyancy of the grocery sector in stark contrast to some of the tales of woe emanating from the rest of the High Street."

Among the major retailers only Waitrose eclipsed the performance of the big three as the John Lewis-owned chain recorded 10% year-on-year sales growth, and edged up its share of the market from 3.7% to 3.9%.

In the low-cost grocery sector, Aldi and Lidl have made the most of the recent troubles endured by Kwik Save, growing their market share by 12% and 11% respectively.

Last month Kwik Save announced last that it had secured a £50m (€73.9m) rescue package from a private consortium headed by the company's former chief executive Paul Niklas.

The discount grocery chain has suffered since being spun out of Somerfield in February last year, with reports earlier this year that suppliers were refusing to deliver to stores.

Asda, the second largest supermarket chain, has a 16.9% market share ahead of Sainsbury's with 16.4%. Morrison has an 11% share, followed by Waitrose on 3.9%.