1. © Worldpanel TM division of TNS 2008 Edward Garner Communications Director Worldpanel – UK The Shifting Sands of Retail Coombe Abbey - October 2008

2. © Worldpanel TM division of TNS 2008 Edward Garner Communications Director Worldpanel – UK The Shifting Sands of Retail Coombe Abbey - October 2008 Downturn?

3. © Worldpanel TM division of TNS 2008

4. Grocers +7.3% Non-Grocers -3.2%

5. Grocery Price Inflation – TNS Calculation Based on year-on-year comparisons of price paid for over 75,000 identical products including promotions and in the proportion that British households are purchasing them

6. Tesco Asda Morrisons Sainsbury's Aldi Lidl Iceland Waitrose Somerfield Netto M&S (-ve growth) Significant (top 20) grocery switching flows Switching out only for M&S, Waitrose and Sainsbury’s Switching restricted to 11 retailers

7. Tesco Asda Morrisons Sainsbury's Aldi Lidl Waitrose Significant (top 20) grocery switching flows Clear movement to the value end of the spectrum Iceland Discount Retailers Premium Retailers Somerfield M&S (-ve growth) Line width is size of the switch Bubble size is the total growth of retailer Switching restricted to 11 retailers

8. © Worldpanel TM division of TNS 2008 Switching cascades down the hierarchy Each tier flows to every tier below. An implied price/value ranking Standard Own Label Branded Value Own Label No Brand Name Premium Own Label Line width is size of the switch Bubble size is the total growth of the tier

9. © Worldpanel TM division of TNS 2008

11. ® Agenda Tesco – Slowing Asda – not just C2DE Sainsbury – Mass/Up/Market Morrisons – Surge Waitrose – The Ethical consumer Discounters – Flocking Home Delivery

12. © Worldpanel TM division of TNS 2008 ® Agenda Tesco – Slowing Asda – not just C2DE Sainsbury – Mass/Up/Market Morrisons – Surge Waitrose – The Ethical consumer Discounters – Flocking Home Delivery

13. © Worldpanel TM division of TNS 2008

19. 87.6% 27 x 52 wkly periods ending Sep 7 2008

20. © Worldpanel TM division of TNS 2008

22. Latest 12-wk % Change +29% +25% +33% +56%

23. © Worldpanel TM division of TNS 2008

24. 12 wk y-o-y trend -11%

25. © Worldpanel TM division of TNS 2008 Tesco PL Lifestyle Indices Tesco Finest Tesco Value “I regard myself as a connoisseur of food and wine” 15087 “Price is the most important factor when buying a product” 80129 Share indexed on Total Trade – 52 w/e Sep 7 2008

26. © Worldpanel TM division of TNS 2008

31. ® Agenda Tesco – Slowing Asda – not just C2DE Sainsbury – Mass/Up/Market Morrisons – Surge Waitrose – The Ethical consumer Discounters – Flocking Home Delivery

32. © Worldpanel TM division of TNS 2008

35. 13.7 C2DE Large households Younger With children

36. © Worldpanel TM division of TNS 2008 Trading Indices - Asda Broad Areas indexed on Total Groceries 52 w/e Sep 7 2008

37. © Worldpanel TM division of TNS 2008 Strong performance in ‘Fresh’

38. © Worldpanel TM division of TNS 2008 Strong performance in Organic

39. © Worldpanel TM division of TNS 2008 Fastest growing premium PL 12 wk y-o-y trend +18%

40. © Worldpanel TM division of TNS 2008 More sales to ‘Held’ Shoppers Asda, Rolling Source of Change in Spend

41. © Worldpanel TM division of TNS 2008 Net Switching Volumes to Asda

42. © Worldpanel TM division of TNS 2008 Net Switching Volumes to Asda

43. © Worldpanel TM division of TNS 2008 Net Switching Volumes to Asda

44. © Worldpanel TM division of TNS 2008 Net Switching Volumes to Asda

45. © Worldpanel TM division of TNS 2008 Net Switching Volumes to Asda

46. © Worldpanel TM division of TNS 2008

48. Sharper price focus

49. © Worldpanel TM division of TNS 2008

52. ® Agenda Tesco – Slowing Asda – not just C2DE Sainsbury – Mass/Up/Market Morrisons – Surge Waitrose – The Ethical consumer Discounters – Flocking Home Delivery

53. © Worldpanel TM division of TNS 2008

58. 12 wk y-o-y trend -1%

59. © Worldpanel TM division of TNS 2008 Trading Indices - Sainsbury Broad Areas indexed on Total Groceries 52 w/e Sep 7 2008

60. © Worldpanel TM division of TNS 2008

61. Till Roll Share indexed on All Shoppers – 52 w/e Jul 13 2008 Worldpanel Lifestyles - Sainsbury Share Index

62. © Worldpanel TM division of TNS 2008 Fairtrade

63. © Worldpanel TM division of TNS 2008

64. Total Grocers

65. © Worldpanel TM division of TNS 2008 Total Grocers Sainsbury

66. © Worldpanel TM division of TNS 2008 Total Grocers Sainsbury Waitrose

67. © Worldpanel TM division of TNS 2008 Free Range Eggs

68. © Worldpanel TM division of TNS 2008

72. Total Grocers

73. © Worldpanel TM division of TNS 2008 Total Grocers Sainsbury

74. © Worldpanel TM division of TNS 2008 Total Grocers Waitrose Sainsbury

75. © Worldpanel TM division of TNS 2008 Chickens

76. © Worldpanel TM division of TNS 2008 Chickens Hens Eggs

77. © Worldpanel TM division of TNS 2008 The Olive Index

78. © Worldpanel TM division of TNS 2008

79. Trading Indices - Sainsbury Broad Area Market Sector Market 52 w/e Sep 7 2008

80. © Worldpanel TM division of TNS 2008

85. Total Switching Gains £14 Million

86. © Worldpanel TM division of TNS 2008 Sainsbury, Rolling Source of Change in Spend

87. © Worldpanel TM division of TNS 2008 Sainsbury's strong Repeat but needs ‘new’ shoppers – poor price perception?

88. © Worldpanel TM division of TNS 2008 Net Switching to Sainsbury from Morrisons Tot

90. © Worldpanel TM division of TNS 2008 ® Agenda Tesco – Slowing Asda – not just C2DE Sainsbury – Mass/Up/Market Morrisons – Surge Waitrose – The Ethical consumer Discounters – Flocking Home Delivery

91. © Worldpanel TM division of TNS 2008

92. Store sell-offs Now stable Real Growth

93. © Worldpanel TM division of TNS 2008 Morrisons Growth from both existing and new shoppers

94. © Worldpanel TM division of TNS 2008 Morrisons Shoppers – London Lifestyles Till Roll Share indexed on All Shoppers – 52 w/e Mar 25 2007

95. © Worldpanel TM division of TNS 2008 In the opinion of Londoners……… =

96. © Worldpanel TM division of TNS 2008

103. Trading Indices - Morrisons Broad Areas indexed on Total Groceries 52 w/e Sep 7 2008

104. © Worldpanel TM division of TNS 2008 Trading Indices - Morrisons Market Sectors indexed on Total Groceries 52 w/e Sep 7 2008

105. © Worldpanel TM division of TNS 2008 Trading Indices - Morrisons Markets indexed on Total Groceries 52 w/e Sep 7 2008

106. © Worldpanel TM division of TNS 2008

113. The Morrisons Difference

115. © Worldpanel TM division of TNS 2008

116. ® Agenda Tesco – Slowing Asda – not just C2DE Sainsbury – Mass/Up/Market Morrisons – Surge Waitrose – The Ethical consumer Discounters – Flocking Home Delivery

117. © Worldpanel TM division of TNS 2008

119. Worldpanel Lifestyles - Waitrose Share Index Till Roll Share indexed on All Shoppers – 52 w/e Jul 13 2008

120. © Worldpanel TM division of TNS 2008 Organic

121. © Worldpanel TM division of TNS 2008 £m’s Total Organic Products Annualised Value = £1,300m

122. © Worldpanel TM division of TNS 2008

127. Trading Indices - Waitrose Broad Area Market Sector Market 52 w/e Sep 7 2008

130. © Worldpanel TM division of TNS 2008

137. P1 P2

138. © Worldpanel TM division of TNS 2008

145. Aldi

146. © Worldpanel TM division of TNS 2008 Lidl

147. © Worldpanel TM division of TNS 2008

148. Thank you ed.garner @tns-global.com