Sainsbury increases market share in wake of horsemeat scare

J Sainsbury is the only one of the four largest UK supermarkets to increase its market share as the industry was hit by the UK's horsemeat scandal, according the data from Kantar Worldpanel Tuesday.

J Sainsbury is the only one of the four largest UK supermarkets to increase its market share as the industry was hit by the UK's horsemeat scandal, according the data from Kantar Worldpanel Tuesday.

Spending at the British grocer rose 4.6% in the 12 weeks to February 17th and market share increase 17% from 16.9% a year earlier.

The data comes a week after Sainsbury said there was no horsemeat found in its beef products following 250 tests in line with the Food Standards Agency.

Tesco, Asda, Lidl, Iceland, Co-Operative and Aldi were among those told to withdraw items from shelves.

Sainsbury's boss Justin King warned the industry was faced with a new reality following the crisis.

"Trust has been severely damaged," he told The Telegraph.

"The horse meat scandal has identified potential weaknesses in the food supply chain that must be addressed with urgency and rigour."

Kantar's figures are the first to show how shoppers reacted to the scare which unfolded in mid-January.

"The issue has so far only affected the performance of individual markets rather than where consumers are choosing to shop," said Director of Kantar, Edward Garner.

While Sainsbury flew in the face of the incident, the other three of the UK's 'big four' supermarkets, Tesco, Asda and Morrisons, failed to boost their market share, Kantar said. Morrison lost the race, with spending dropping 1.3%.

Tesco's share took a hit, with a drop from 30.1% a year ago to 29.7%.

Asda also saw its share drop to 17.7% from 17.8% as the upmarket Waitrose chain and discounters Aldi and Lidl delivered strong performance.

The total grocery market is growing at an annual rate of 3.7% which lags behind grocery price inflation of 4.3%.

The discovery of horsemeat in beef products across Europe also affected frozen goods sales in the four weeks to February 17th. Frozen beef-burger sales were down by 43% and frozen ready meals declined by 13%.

RD

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
Prepare for the end of the epic bubble in US stocks
US stockmarkets

Prepare for the end of the epic bubble in US stocks

US stocks are as expensive as they’ve ever been. How can you prepare your portfolio for a bubble bursting?
18 Jan 2021
The best investment trusts to buy for 2021
Investment trusts

The best investment trusts to buy for 2021

Sectors ranging from emerging markets to student accommodation look poised to do well this year, says David Stevenson, as he picks the best investment…
19 Jan 2021