SUPERMARKETS SALES RISE WITH LIDL AND ALDI STILL SURGING AHEAD
Summer sales of supermarket groceries rose by 0.3%, with German discount chains Lidl and Aldi showing the largest gains in market share, according to industry data.
Market researcher Kantar Worldpanel said the rise in the 12 weeks to 14 August was boosted by the warm weather. Lidl and Aldi recorded sales growth of 12.2% and 10.4% respectively.
Tesco was the best performer of the big four supermarkets, recording a sales drop of 0.4% compared to 2015. Asda remained at the bottom, with sales down 5.5%. Last week, Asda reported its worst quarterly performance on record.
Sainsbury’s saw sales fall 0.6% and Morrisons by 1.8%.
Kantar said the overall market rise in sales was the fastest seen since March 2016.
Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said: “The sun’s eventual appearance was a welcome boost to the market after a delayed start to the summer.
“Frozen confectionary sales grew by 23% in the last month, while chilled drinks increased by 10%.”
At Iceland, ice cream was the fastest growing category, helping it to an overall 2.8% increase in sales on last year.
Promotional sales dropped to their lowest level since September 2010 as the major retailers continued to move towards simpler pricing models.
Mr McKevitt said:” 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.”
Kantar said grocery price inflation remained negative with a representative basket of goods 1.3% cheaper than it was last year.