8th Apr 2015 09:24
LONDON (Alliance News) - J Sainsbury PLC has registered its first sales growth since August last year, according to the latest Kantar Worldpanel UK grocery market data published on Wednesday, as Tesco PLC also increased its sales but the growth of discounters Aldi and Lidl continued to eat into both the sales and market share of the big four supermarkets.
Sainsbury's grew its sales by 0.2% in the 12 weeks to March 29 to GBP4.14 billion, up from GBP4.13 billion a year earlier. Its market share remains slightly lower year-on-year, down to 16.4% from 16.5%, but the rate at which it is losing market share slowed in the period, Kantar said.
Tesco sales rose 0.3% in the period to GBP7.19 billion from GBP7.17 billion a year earlier, and its market share is at 28.4%, again slightly lower year-on-year from 28.6% in 2014.
Sales for Wal-Mart Stores Inc-owned Asda fell 1.1% in the period, down to GBP4.32 billion, and Wm Morrison Supermarkets PLC sales also fell 0.7% to GBP2.76 billion. Asda's market share fell to 17.1% from 17.4% and Morrisons' market share was down to 10.9% from 11.1%.
Both were hit by the continued growth of discounters Aldi and Lidl, with Aldi growing sales by 16.8% and Lidl growing its sales by 12.1%. The pair now have a 9% share of the UK grocery market, up from 5.4% in 2012, Kantar said.
All the UK's four biggest supermarkets have been under pressure as customers have changed their shopping habits. Discounters Aldi and Lidl, as well as upmarket grocer Waitrose, part of John Lewis Partnership, have been growing at the expense of the big four.
Waitrose also saw sales rise in the period, up 2.9% to GBP1.29 billion. It market share is up to 5.1% from 5.0% a year earlier.
Grocery inflation has seen its 19th successive fall and is now at -2% for the 12-week period year-on-year, meaning shoppers are now paying less for a representative basket of groceries than they did in 2014. Kantar said the inflation level is a record low since it started recording grocery price inflation in 2006 and reflects the impact of Aldi and Lidl's discounting policies on the price competitiveness of the market.
Tesco shares were down 0.6% to 249.60 pence on Wednesday, while Sainsbury's shares were up 0.6% to 270.90 pence and Morrisons shares were up 0.2% to 198.62 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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