The UK's big four supermarkets continue to suffer, as the chasing pack make strong gains.
The latest grocery market share figures from Kantar Worldpanel for the 12 weeks to 22 May 2016 show that the market is essentially flat, with value growth of just 0.1 per cent. With food price deflation staying at 1.5 per cent in this period, this has been seen as a positive showing for the overall market, despite Tesco, Sainsbury's, Asda and Morrisons continuing to see sales declines.
Nevertheless, the big four do still appear to be getting the footfall, as according to Kantar, their combined shopper numbers have dropped only 0.2 per cent in the latest 12 weeks.
Ed Garner, Kantar Worldpanel director, said: 'In fact, 94 per cent of Aldi and Lidl shoppers still visit at least one of the four major retailers every four weeks. But, consumers’ spend is increasingly being shared with other growing outlets, which also include Waitrose, The Co-op and Iceland, and average household spend for the big four has fallen by 2.9 per cent.'
Delving into the specifics, Tesco had the smallest drop in sales among the big four, of just one per cent. Sainsbury’s 1.2 per cent sales decline, which has led to a drop in its market share to 16.2 per cent, was driven by a drop in pack sales – the short-term result of shifting its promotional emphasis from multi-pack deals to straight price cuts.
Asda’s low-price positioning continues to feel the targeted effect of Aldi and Lidl’s growth – sales fell 5.1 per cent on last year, according to the Kantar data, giving it a 15.8 per cent share of the market. Morrisons, meanwhile, continues to be affected by store disposals.
Lidl and Aldi remain the fastest-growing grocery retailers – with year-on-year sales up 14.2 per cent and 11.4 per cent respectively.
Garner added: 'This is not just about low prices: coupled with Waitrose’s strong performance this period, the discounters are contributing to premiumisation. Aldi’s premium own label Specially Selected has grown by 15 per cent, while Lidl’s Deluxe range has grown by an impressive 65 per cent.'
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