Morrisons’ market share reaches 10-year low
THE market share of Morrisons has reached its lowest point in a decade, when the integration of Safeway was not quite completed.
The latest figures from industry analysts Kantar Worldpanel put the Bradford-based supermarket group’s market share of the £2bn-a-week sector at 10.7%.
Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, warned that Morrisons’ market share is expected “to fall further in the coming months as the recently announced store closures take effect”.
Kantar produces sales and market share figures for rolling 12-week periods every four weeks.
Morrisons has had negative like-for-like sales for 21 of the last 23 periods, while its market share peaked at 12.7% in early 2011.
Its market share was last as low in the 12 weeks to January 1, 2006, a period which saw the final Safeway stores convert to Morrisons.
Asda and Morrisons’ market share, 2005-2015 (source: Kantar Worldpanel):
Morrisons’ new management team of chairman Andrew Higginson and chief executive David Potts, who assumed their roles in January and March respectively, have been leading a major transformation of the group and have acknowledged that turning the business around is a long-term project.
Asda is also struggling to hold on to market share, which has been on a downward trend for a couple of years through competition from the discount supermarkets.
Its rate of decline increased in the 12 weeks to September 13, with sales down 2.9%, according to industry analysts Kantar Worldpanel. However it retained second place ahead of Sainsbury’s, with its market share at 16.7% compared to its rival’s 16.2%, despite Sainsbury’s being the only one of the big four to increase sales.
The supermarket sector as a whole remains under pressure with the latest grocery figures showing a sixth consecutive month where the market has shown year-on-year growth of less than 1%.
