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Shoppers switching to smaller stores, says new report

Published 01/07/2015

Aldi has been named best supermarket and Volkswagen best car manufacturer at the annual Which? Awards
Aldi has been named best supermarket and Volkswagen best car manufacturer at the annual Which? Awards

Tesco and Sainsbury’s share of the UK grocery market has continued to decline as shoppers turn to the smaller supermarkets, new figures showed.

The grocery overall market slipped back into decline with 0.1% less money going through the supermarket tills in the 12 weeks to June 21 compared with a year earlier, according to Kantar Worldpanel.

Groceries are now 1.7% cheaper than a year ago, the research firm said.

Prices have been falling since September last year, but the rate of decline is slowing, meaning they are projected to rise again by the end of the year.

Sales fell by 1.3% at Tesco and Sainsbury’s, taking market share down to 28.6% and 16.5% respectively, a decrease of 0.3 and 0.2 percentage points.

However, Bradford-based Morrisons saw sales grow 0.6%, and Waitrose also grew ahead of the market by 1.2%.

Morrisons increased its market share to 11%, while Aldi and Lidl continued to take business away from the competition reaching a new high of 5.5% and rising to 3.9% respectively.

Sales at Asda were down by 3.5%, leaving a 16.5% share compared with 17.1% last year.

The Co-operative held its market share steady at 6.2%.

Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said: “Last seen in November, the return to marginal decline across the grocery market reflects both falling prices and only steady volume growth.

“Sales volumes are up 2% compared to a year ago but are not anticipated to accelerate, even with an improving economy, as demand for groceries has remained broadly steady since before the recession.

“Morrisons has seen the largest sales increase among the Big Four retailers for the second month in a row, recording a sales growth of 0.6%, which has been supported by an increase in online shopping.”

Belfast Telegraph

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