Co-op sales on the up

THE Co-operative Group is continuing to increase sale and grow its share of the grocery market.

The Manchester-based group, which now operates around 3,000 convenience stores after its takeover of Somerfield last year, saw sales rise 16% in the 12 weeks to March 21, according yo market research group Kantar Worldpanel.

The Co-op’s market share grew from 5.2% to 5.8%. The mutual is the fifth biggest player in the market, but lags some way behind the big four Tesco, which has 30.3% of the market, Asda, 17.1%. Sainsbury’s which has 16.3% and Morrisons 12.1%.

Asda and Morrisons, the Yorkshire-based chains encountered contrasting fortunes. Morrisons enjoyed the fastest growth in the period with sales up 7.8%, taking its market share up 0.5%. Asda saw its sales grow by just  2.7% knocking its market share by 0.2%

Across the whole market sales growth was at its slowest for two-and-a-half years, rising 3.6%.

Kantar said the main factor behind the weak sales growth was a fall in food price inflation to 1.8% from 2.4% last month.