Published: Tue, October 17, 2017
Business | By Max Garcia

Britain's 'Big Four' lose market share to discounters

Britain's 'Big Four' lose market share to discounters

Lidl was the UK's fastest-growing supermarket, and its market share rose 0.6 percentage points to 5.2% and Aldi's also rose 0.6 percentage points to 6.8%.

Sainsbury shares reacted the best, up 2.6% to 250p after its sales increased 1.9% on previous year, with market share holding relatively steady - down 0.2 percentage points - at 15.8%.

Waitrose edged ahead of Lidl in terms of market share, dipping 0.1 per cent to 5.3 per cent. Sales jumped 2.3 per cent helped by a traditionally strong Christmas period.

Each of the big four grocers has grown sales but seen a decrease in market share as Aldi and Lidl can now boast half the total market's growth, new figures show.

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.

Behind the big four, major gains were experienced by the discount supermarkets. (WMT), saw its market share fall to 15.4%, from 15.6% for the comparable 12 weeks, with sales 1.8% higher at GBP3.93 billion. Wm.

Sales at Sainsbury's increased 1.9% in the 12 weeks, while market share dropped 0.2 points to 15.8%, with only 35% of group sales coming via price promotions from almost 40% a year ago.

Online specialist Ocado, which provides the back-end for Morrisons' fast-growing unit, increased its own sales 8.7% over the 12 weeks as it continued to win share of the online market. This marks a significant change as Asda traditionally sells a greater portion of branded items than its rivals. "They now account for 45% of sales, with Asda's value-focused Farm Stores line and premium Extra Special range leading the charge", Mckevitt explained. Morrison Supermarkets PLC's (MRW.LN) market share declined to 10.3%, from 10.4%, while sales increased by 2.8% to GBP2.63 billion.

Online sales growth slowed McKevitt said, down to 6.7% from the high of 21.9% in October 2014. Grocery prices were 3.2 per cent higher during quarter, with United Kingdom inflation expected to hit 3 per cent in figures released later today, the Telegraph reports.

"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".

Kantar figures suggest that Christmas has already arrived, with shoppers spending £69m on chocolate confectionary boxes, £4m on mince pies and £1.1m on Christmas puddings in the past four weeks.

Like this: