Yorkshire’s supermarkets’ market share hits 11-year low

YORKSHIRE’s two supermarket chains have seen their combined market share hit an 11-year low as fierce competition in the sector continues.

Leeds-based Asda had 15.6% and Bradford-based Morrisons had 10.4% of the UK grocery market – meaning the combined share of 26.0% was the lowest since Morrisons was in the process of completing its takeover of Safeway more than a decade ago.

In 2012 the pair briefly had more than 30% of the market, but the rise of the hard discounters, Aldi and Lidl, have changed the landscape.

Big four rival Tesco is also enjoying a revival, with the latest figures from Kantar Worldpanel for the 12 weeks to October 9, showing it winning market share for the first time in five years.

Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said: “While the threat of rising prices is on a lot of minds at the moment, we’ve seen the 27th consecutive period of grocery price deflation, albeit at a slower rate.”

Asda and Morrisons’ market share, 2006-2016:

Data: Kantar Worldpanel

Morrisons continues to feel the effects of a smaller store portfolio with sales down by 3.0%.  The re-launch of its ‘The Best’ range has had a positive impact on its premium own label sales, which increased by 6%.

There was a similar picture at Asda where sales were down by 5.2% – its slowest rate of decline for four months – despite a premium own label sales increase of 8%.

Asda has had a tumultuous couple of years, with its own figures showing eight consecutive quarters of falling sales. Owners Walmart brought in Sean Clarke in July from its Chinese division to run Asda.