Retail promotions have dropped to their lowest level since September 2010 as supermarkets shift towards simpler pricing models.
According to the latest Kantar data, only 37.7 per cent of grocery sales were bought on promotion over the past 12 weeks, compared to over 40 per cent seen in 2015. “Fewer promotions doesn’t mean consumers are paying more for their shopping but does reflect the renewed focus on own-label lines which is visible across the market,” said Kantar analyst, Fraser McKevitt.
Elsewhere, Lidl was the fastest-growing supermarket for the 12 weeks to 14 August 2016, with sales up 12.2 per cent, and strong growth in the produce, dairy and chilled aisles.The overall market grew by at 0.3 per cent as better weather prompted consumers to spend more.
Sales at Aldi rose by 10.4 per cent, while Tesco’s sales fell by 0.4 per cent, the slowest rate of decline in six months. McKevitt said: “Tesco’s recent product launches have been making a positive impact on its performance, with its ‘Farm brands’ finding their way into over a quarter of the Tesco baskets this period.”
Sales at the Co-op rose by 2.8 per cent compared to last year, taking its market share to 6.6 per cent – the highest achieved since 2012.
Sales fell by 0.6 per cent at Sainsbury’s and at Morrisons by 1.8 per cent. Asda’s decline of 5.5 per cent remains unchanged from last month, while Waitrose sales rose by 1.4 per cent with market share remaining at 5.1 per cent.
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