Morrisons is “fastest-growing” among big 4 rivals

Morrisons has enjoyed the strongest performance among the big four supermarkets in the last three months, although the smaller operators continue to take customers away from the major brands.

“Morrisons was the fastest growing of the large supermarkets this period, increasing sales by 2.8%,” said Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel.

“Growing sales at Morrisons’ bricks and mortar stores were supplemented by rapid expansion on its e-commerce platform, particularly in London and the south where online sales have risen 29%. Despite the growth, however, the retailer’s overall market share fell by 0.1 percentage points to 10.3%.”

The latest data from analysts Kantar Worldpanel also provided good news for Asda, with a sales increase that helps sustain its recent recovery – up 1.8% in the 12 weeks to October 8.

Fraser McKevitt explains: “Despite traditionally selling a higher proportion of brands than its major rivals it is own-label sales which are driving the growth at Asda. They now account for 45% of sales, with Asda’s value-focused Farm Stores line and premium Extra Special range leading the charge.”

Supermarket sales increased in value by 3.1% compared with last year – the 17th period of growth in a row for Britain’s grocers. Like-for-like grocery inflation remains at 3.2% but is expected to fall back, to below 2% in the first quarter of 2018.