Asda continues to underperform the grocery market and has seen a dip in its market share for the ninth consecutive report.

According to Kantar Worldpanel, for the 12 weeks ending September 5, Asda reported growth of just 2.6%.

Tesco remained largely unchanged, while Sainsbury’s and Morrisons delivered another strong set of results. They both lifted their market share and are growing ahead of the market at 5.5% and 5.9% respectively. Sainsbury’s has recorded a year-on-year share growth for its 19th consecutive report.

Overall growth in the market at 4.3% is ahead of grocery inflation at 2.7%. Kantar expects grocery price inflation to be held around 4% by the year end.

Edward Garner, communications director at Kantar Worldpanel said: “While uncertainty in the economy means that value is still important consumers are placing increasing importance on the freshness and quality of the food they buy. This is evident in the premiumisation we have seen in the grocery market and the strong performances of Sainsbury’s and Waitrose – which recorded another admirable growth of 9.3% this month. Recent statements from Asda’s chief executive Andy Clarke show that the retailer has recognised the need to adjust its strategy and we’ve started to see a greater emphasis on quality in the latest advertising campaign.”

Discounters continue to languish behind the market, with only Lidl recording a slight increase in share.

Meanwhile, the Co-op conversion is nearing completion and Somerfield has all but disappeared from the high street with just a 1% share left.

 12 Weeks to
6 Sept 2009
12 Weeks to
5 Sept 2010
 £000s% *£000s% *%
Total Till Roll28,375,160 29,515,440 4
Total Grocers21,246,370100.00%22,157,600100.00%4.3
Total Multiples20,783,69097.80%21,662,77097.80%4.2
Farm Foods118,1100.60%140,9400.60%19.3
Other Multiples424,1332.00%491,6372.20%15.9
Symbols & Independents462,6852.20%494,8222.20%6.9
* = Percentage Share of Total Grocers