Tesco and hard discounters return to growth

Although its growth continues to lag behind that of its main rivals, Tesco has begun to post stronger sales growth after doubling its Clubcard points, with its sales up 4.5% in the 12 weeks to 3 October, 2009, compared to the same period a year ago.

‘Tesco are now looking like they are back on track, particularly in the latest four weeks where growths further improved to +5.5% YoY,' said Mike Watkins, senior manager retailer services at Nielsen.

Helped by good weather, the entire grocery sector picked up in September. Following a leaden summer, value sales growths in the four weeks to October 3 was 3.5% higher for all grocery retailers and grocery multiples saw 4.5% growth.

‘After a low point in August for the discounters, sales over the last four weeks were much better with strong local leafleting and price led marketing from Aldi, Netto and Lidl. New shoppers were attracted to Lidl and sales were up 11% at Aldi. Iceland, with sales up +7.9%, shows a similar trend which indicates that limited range value retailing continues to be an important part of the shopper repertoire,' said Watkins.

This article was first published on marketingmagazine.co.uk