The Co-operative has returned to growth for the first time since July 2014 as price reductions to fresh produce appeared to reap rewards and sales rose by one per cent.
The business recently invested £125 million in price cuts to fruit and vegetables, as more than 100 lines were reduced by as much as half under its new ‘Fresh Three’ promotions.
According to the latest Kantar Worldpanel figures [12 weeks to 20 July], The Co-op’s focus on its convenience offer was behind its sales rise, although its market share has remained the same.
Elsewhere, despite a fall in sales of 0.3 per cent, Sainsbury’s has edged its market share of 16.5 per cent ahead of Asda, which now stands at 16.4 per cent, a shift analysts credited to growth in Sainsbury’s Local outlets, and faster market growth in the south of the country.
The discounters continued to see strong growth as Aldi grew by 16.6 per cent while Lidl saw growth of 11.3 per cent, meaning both have moved to new market share highs of 5.6 per cent and 4.0 per cent respectively.
And Waitrose’s new ‘Pick Your Own Offers’ initiative has had a positive impact, Kantar said, as the premium retailer’s market share rose to five per cent.
Kantar analyst Fraser McKevitt said: “The continued slow growth of the overall market can be explained by minimal volume growth and lower like-for-like prices, both as a result of cheaper commodity prices and the fierce competition between supermarkets.
“Comparable groceries are now 1.6 per cent cheaper than a year ago, meaning prices have been falling since September 2014, although they are projected to start rising again by early 2016.”
McKevitt added: “Morrisons was the best performer among the ‘big four’ retailers, although sales fell back by 0.1 per cent. Meanwhile, sales at Tesco fell by 0.6 per cent and at Asda by 2.7 per cent.”
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