8th Jan 2019 08:43
LONDON (Alliance News) - UK supermarkets achieved record sales growth during the Christmas period, painting a "rosier picture" compared to their high street counterparts, according to the latest Kantar Worldpanel grocery market survey released on Tuesday.
The research agency - reporting market share figures for the 12 weeks to December 30 - said that overall UK grocers achieved GBP29.3 billion in sales during the festive season up 1.6% on the prior year, with consumers spending an extra GBP450 million on groceries compared to a year ago.
Head of Retail & Consumer Insight Fraser McKevitt said: "Despite the supermarket sector growing at 1.6% – its slowest rate since March 2017 – the retailers clocked in another record-breaking Christmas as households racked up an average spend of GBP383 in grocery bills for the month of December."
He added: "Unlike its high street counterpart, the grocery market has been less affected by the move to online. Although e-commerce is growing – up 3.9% compared to this time last year – online grocery shopping is failing to attract new customers."
December 22 was the busiest shopping day of the year, as more than half of all households visited a supermarket for a last minute "Christmas dash".
Sales of non-alcoholic beer and Christmas puddings rocketed by GBP7.6 million and GBP40.8 million respectively, but whole turkey sales dropped by 7% as Britons opted for smaller joints.
UK grocery price inflation for the period was lower at 1.3%, less than half the level of like-for-like inflation of 3.6% recorded in Christmas 2017. Prices have been rising since January 2017 with cola, fresh lamb and battery prices rising fastest.
Kantar said two thirds of households shopped at German discounters Aldi and its rival Lidl over the 12-week period, leading to a highest-ever combined Christmas market share of 12.8%.
Aldi saw sales up 10.4% in the 12 weeks, being crowned as the fastest-growing supermarket. It now has a market share of 7.4%, up from 6.8% a year ago.
Lidl experienced sales growth of 9.4%, with its market share rising to 5.4% from 5.0%.
Of the big four supermarkets, Walmart Inc's-owned Asda, which is in the process of merging with J Sainsbury PLC, came on top with overall year-on-year sales growth of 0.7% in the 12 week period, as online sales increased by 12%. It's market share however shed 0.1 percentage points to 15.2%.
UK's biggest supermarket, Tesco PLC, came neck-to-neck with Asda after experiencing sales growth of 0.6%. It's market share now stands at 27.8%, down 0.3 percentage points compared to last year.
Sainsbury's sales fell 0.4% with its market share tumbling to 16.2% from 16.5% a year ago.
Wm Morrison Supermarkets PLC, which on Tuesday reported fourth consecutive Christmas sales growth, saw 0.1% growth in sales for the 12 week period. Its market share declined to 10.6% from 10.8%.
Online retailer Ocado Group PLC saw sales up 1.3% but shed 0.1 percentage points from its market share, now at 1.0%.
Waitrose's sales declined 1.7% as the John Lewis Partnership-owned supermarket chain edged down its market share to 5.0% from 5.2%.
Co-op increased its market share for the seventh period in a row to 5.9% after reporting a sales increase of 3.2%.
Frozen food specialist Iceland Foods now accounts for 2.3% of the market, up 0.1%, after sales growth of 1.8%.
Tesco shares were trading 1.8% higher early Tuesday, while Ocado was up 2.3%. Sainsbury's and Morrison were down 0.3% and 2.4% respectively.
Related Shares:
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