7th Jan 2020 08:50
(Alliance News) - Supermarket sales in the UK rose to record numbers in the 12 weeks to December 29, but it was the slowest rate of growth over the Christmas period since 2015, data from researchers Kantar showed on Tuesday.
All members of the "big four" grocery chains in the UK recorded falls in market share, though German discounters Aldi and Lidl grew and Ocado Group PLC showed the fastest sales rise.
For the 12 weeks ending December 29, supermarket sales rose to GBP29.35 billion from GBP29.30 billion, representing 0.2% year-on-year growth, which Kantar says is the slowest rise in four years.
Fraser McKevitt, head of retail and consumer insight at Kantar, said: "There was no sign of the post-election rush many had hoped for in the final weeks before Christmas, with shoppers carefully watching their budgets.
"In fact, many of us cut back on traditional and indulgent festive classics. Sales of Christmas puddings were down by 16%, while seasonal biscuits were 11% lower. Turkey sales also fell by 1%, partly down to a shift from whole birds to smaller and cheaper joints such as crowns. Shoppers also popped fewer corks this year, as sparkling wine sales dipped by 8%. However, both beer, up 1%, and still wine, up 2%, were more popular than in 2018."
Ocado recorded the fastest sales rise during the period, according to Kantar data. The FTSE 100-listed firm saw sales jump 13% year-on-year in the period to GBP389 million from GBP345 million. Its market share nudged up to 1.3% in the 12 weeks from 1.2% last year.
WM Morrison Supermarkets PLC market share slipped to 10.3% from 10.6%, with sales falling by 2.9% to GBP3.01 billion from GBP3.11 billion last year. Earlier today, Morrisons said challenging trading conditions and sustained consumer uncertainty led to a 1.7% like-for-like retail sales fall in the 22 weeks to January 5.
Walmart Inc's Asda saw its market share decline to 14.8% from 15.2%, with sales down 2.2% year-on-year to GBP4.35 billion from GBP4.45 billion.
Turning to other members of the "big four", Tesco PLC saw its market share fall to 27.4% from 28.4%, still the largest in the UK grocery market, however. Its sales were down 1.5% to GBP8.03 billion from GBP8.15 billion.
J Sainsbury PLC's sales fall was more modest, declining 0.7% year-on-year to GBP4.69 billion from GBP4.73 billion with market share at 16.0% compared to 16.1%.
Kantar said: "The slow market made it particularly difficult for the largest retailers to increase sales. The 'big four' grocers were especially impacted by customers choosing to make one fewer trip to stores in the latest period."
Aldi's market share grew to 7.8% from 7.4% and sales rose during the period to GBP2.29 billion from GBP2.16 billion last year. Lidl's market share increased to 5.9% from 5.3% and the discounter's sales were up 10.3% to GBP1.73 billion from GBP1.57 billion.
Elsewhere, Co-operative Group and Iceland Foods Ltd both saw increase in their market share and sales for the 12 week period.
Co-op sales were up 3.0% year-on-year to GBP1.78 billion from GBP1.73 billion and market share edged up to 6.1% from 5.9%.
Iceland sales climbed 1.3% to GBP667 million from GBP659 million. Its market share increased to 2.3% from 2.2%.
Waitrose & Partners sales slipped 0.9% to GBP1.46 billion from GBP1.47 billion, but market share was flat at 5.0%.
Kantar said grocery inflation stood at 0.9 for the 12 week period, with prices rising fastest in markets such as fresh sausages, fresh bacon and fresh lamb, while falling in instant coffee, fresh beef and butter.
On Tuesday morning in London, Sainsburys was trading 1.9% higher, with Ocado up 1.1%. Tesco shares edged 0.2% higher and Morrisons was up 2.9%.
By Eric Cunha; [email protected]
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