Value of supermarket sales grows 3.1pc

Ivan Schwartz
October 18, 2017

The latest data from the United Kingdom grocery market released by Kantar Worldpanel on Tuesday revealed a 17th consecutive 12-week period of growth for the British grocery market, as Christmas came early with shoppers snapping up over GBP70 million festive favourites over the past four weeks.

The supermarket is getting its act together at last with online sales, particularly in London and the south, where online sales rose 29%.

The combined market share of the two German retailers grew to 12% in the 12 weeks to October 8, up from 10.8% the prior year, the survey showed.

Morrisons increased sales by 2.8% and was the fastest-growing of the Big Four during the period, while Tesco sales grew by 2.1%.

Asda posted sales up 1.8%, driven by its own-label brands which now account for 45% of sales.

Aldi's sales in the 12 weeks grew 13.4% to GBP1.74 billion, while Lidl's sales rose 16% to GBP1.33 billion. And sales at Sainsbury's increased 1.9% on a year ago, taking a 15.8% market share, down 0.2 percentage points.

Leeds-based Asda's sales were boosted by strong demand for its value-focused Farm Stores line and its premium Extra Special range. Meanwhile, at Co-op sales declined by 2.5%, but Iceland sales grew by 2.6%.

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"Meanwhile, Christmas has already started in the supermarket aisles".

Kantar said it was a mixed picture for the major retailers - each of the big four has grown sales but seen a decrease in market share as smaller operators "continue to entice new customers through their doors".

Tesco saw sales grow by 2.1%, though share was down 0.3 percentage points to 27.9% - still by far and away Britain's favourite supermarket. Ocado is the biggest presence in the online market. Tesco's sales in the 12 weeks were GBP7.12 billion, up 2.1%.

Like-for-like grocery inflation remained at 3.2 per cent but it is expected to fall below 2 per cent next year.

"Prices have been rising since the 12 weeks to 1 January 2017, following a period of grocery price deflation which ran for 30 consecutive periods from September 2014 to December 2016".

More than £1 million has been spent on Christmas puddings and around £69 million on chocolate confectionery boxes, which are often given as gifts over the festive period.

Christmas may be almost 70 days away but British shoppers are already in the festive mood, having purchased £4 million worth of mince pies in the last four weeks.

Other reports by GizPress

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