Morrisons feels the pressure as market share drops

Supermarket Morrisons was under pressure from its 'big four' rivals today after industry figures showed it lost ground to larger chains Asda and Sainsbury's.

Britain's fourth biggest grocer's market share dropped to 11.5% in the 12 weeks to September 2nd, from 11.7% a year earlier, following the slowest growth of the 'big four' chains over the period, according to Kantar Worldpanel.

In the period covering the Olympics and Paralympics, Asda and Sainsbury's posted market-beating sales growth of 4.5% and 3.8% respectively.

The latter's market share rose to 16.4% from 16.3% a year earlier, while Asda's lifted to 17.6% from 17.4% when excluding its Netto acquisition.

There was also evidence of a fightback by sector leader Tesco as its fall in market share eased back with a 30.8% share.

However, Kantar said the big winners were outside the "big four", with successes at the two opposite ends of the industry as Waitrose and discounter Aldi held on to record share and growth.

Waitrose, which is owned by the John Lewis Partnership, grew its market share to 4.6% from 4.4% thanks to growth of 7.8% – outperforming the market average of 3.3% growth.

Meanwhile, Aldi saw its market share leap to 2.9% from 2.4% a year earlier, having notched up growth of 26.6%.

Edward Garner, director at Kantar Worldpanel, said Aldi's growth was driven by "dramatic growth in spend levels of existing customers – up 36% over the past two years – rather than an increased number of shoppers".