UK grocery market growth slows to record low
New figures released by Kantar Worldpanel have revealed that overall grocery market growth has slowed to a new record low of 0.3%.
The research firm’s latest grocery share figures for the 12 weeks ending 14 September show that Asda was the only one of the major supermarkets to increase its market share, now at 17.4%, and to see an uplift in its sales which have grown by 0.8% compared with the same period last year.
Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said: “Consumers are currently benefiting from intense price competition between the grocers. For the first time ever we’ve seen the average basket of everyday goods bought today costing exactly the same as it did a year ago. With some staple groceries such as vegetables, milk and bread prices are actually falling as the big retailers all compete for a bigger slice of shoppers’ wallets. As a result the grocery market is currently growing by just 0.3%, the lowest level since our market data was first compiled in 1993.”
Tesco saw its sales decline by 4.5% to leave its market share at 28.8% while Morrisons’ market share fell to 10.9% with sales falling by 1.3%, although the rate of decline has slowed as its fresh food promotional voucher scheme takes effect.
Sainsbury's also experienced a drop with sales declining by 1.8% year-on-year and its market share falling to 16.2%.
Meanwhile, Waitrose grew its sales faster than in previous months, up 4.5%, which brought its market share back up to 5.1%.
McKevitt added: “Aldi has continued its run of double-digit growth, which now stretches back to February 2011, by recording a sales increase of 29.1% compared with last year. Similarly, Lidl has increased sales by 17.7%, showing that shoppers still have a strong appetite for the discount stores.”
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