23rd Jul 2019 08:24
(Alliance News) - UK supermarket sales have declined so far this summer, Kantar reported Tuesday, though this was expected due to the hot weather during 2018.
Kantar data showed all of the "Big Four" grocers, Tesco PLC, J Sainsbury PLC, Wm Morrison Supermarkets PLC, and Asda lost market share in the 12 weeks to July 14.
Sales in the period declined 0.5%, to GBP27.18 billion, with this the first overall decline in the sector since June 2016.
"However, on the back of record sales during last year's hot summer, the tough period was not unexpected. As in politics, nothing is certain in retail, but it is anticipated the market will return to growth once the comparative highs of the 2018 summer pass," said Kantar.
Tesco's sales declined 2.0% in the period to GBP7.49 billion, with market share slipping to 27.2% from 27.6%. Sainsbury's sales fell 2.3% to GBP4.24 billion, and market share reduced to 15.3% from 15.5%.
Morrisons sales fell 2.6% to GBP2.85 billion, with market share declining to 10.3% from 10.5%. Walmart Inc's Asda sales were down 2.0% to GBP4.11 billion, and market share dipped to 14.9% from 15.1%.
Ocado Group PLC's sales rose 12%, the strongest of all grocers included in the survey, with market share rising to 1.4% to 1.2%.
The two major discounters, however, Aldi and Lidl registered strong periods. Aldi sales climbed 6.7% to GBP2.04 billion, and market share was up to 8.1% from 7.5%.
Lidl's sales increased 7.0% to GBP1.48 billion, with market share rising to 5.8% from 5.4%.
"It was a challenging 12 weeks for all the major grocers, with growth slowing at every supermarket except Ocado. The main factor behind the sales drop-off is shoppers heading out to stores less often," said Fraser McKevitt, head of retail & consumer insight at Kantar.
"Last year people shopped more frequently and closer to home as they topped up the cupboards while enjoying the sunshine and the men's football World Cup. This year households are making one fewer trip, which may not sound like much but is enough to tip the market into decline," he continued.
"In addition, like-for-like grocery inflation fell marginally to 0.9%, which is good news for consumers but has made it harder for retailers to achieve value growth."
Some GBP75 million less was spent on alcohol, Kantar continued, with beer sales down 11% and cider down 13%. However, chocolate did grow 15%, due to the cooler weather.
Tesco shares were 2.3% lower on Tuesday at 229.80 pence each, Sainsbury's down 1.4% to 204.00p, Morrison's down 0.5% at 204.70p, and Ocado down 0.6% at 1,212.50p.
In Johannesburg, Brait SE was untraded early on, last quoted at ZAR16.40 a share. It owns 63% of frozen food retailer Iceland.
Iceland's sales fell 1.5% to GBP582 million for the 12-week period to July 14, with market share flat at 2.1%.
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