Supermarkets under pressure as consumers share spend wider

Consumer spend is increasingly being shared across the high street, as pressure continues on the big four retailers, KantarWorldpanel has reported.

Consumers

The latest supermarket figures from KantarWorldpanel showed flat growth across the market, up only 0.1% in the 12 weeks to 22 May 2016. The average household spend at the big four dropped 2.9%, it said, but although all four struggled to maintain market share – Sainsbury’s declined 1.2% to 16.2% and Asda’s 5.1% sales decline saw it 15.8% – shopper numbers at the supermarket dropped only 0.2%.

KantarWorldpanel director Edward Garner said this was a relatively positive performance at a time when food price deflation remained at 1.5%.

“What’s clear is that consumers aren’t flocking away from their stores,” he said, pointing out that 94% of Aldi and Lidl shoppers still visit at least one of the four major retailers every four weeks. “However, consumers’ spend is increasingly being shared with other growing outlets which also include Waitrose, the Co-operative and Iceland, and average household spend for the big four has dropped by 2.9%.”

Tesco showed signs of stablising after returning the smallest drop in sales of 1%, compared to Sainsbury’s 1.2% decline, which Garner said was driven by its recent shift towards more straight-forward pricing. Sales at Asda were down 5.1% compared to the same time last year, attributed to its low-price positioning as it battled the effect of the discounters’ growth.

Lidl and Aldi remained the fastest growing retailers, rising 14.2% and 11.4% respectively, with Waitrose saw sales gains of 2.1% to take its market share to a record 5.3%. The Co-operative also posted sales growth of 3.3%, boosting its market share to 6.2%.

“This is not just about low prices,” KantarWorldpanel said, pointing to the growth of the discounter’s increasingly premium offer. “Coupled with Waitrose’s strong performance this period the discounters are contributing to premiumisation”.

IGD retail analyst Priya Chandarana said Aldi was using its drinks category to stand out in the crowded grocery market and boost sales by exciting shoppers. She cited its sponsorship last week of London Wine Week as a canny move that took its range to an area with few of its stores through a futuristic pop-up shop in Shoreditch, highlighting its new online wine range through tasting, and enabling visitors to purchase wines though in-store tablets. It has also boosted its credentials through collaborating with MW Sam Caporn – a move that has worked for Lidl, she noted.

In March, The Co-op overhauled its BWS sector, adding 33 new wines and adopting a more tailored ‘cluster’ approach to ranging its stores to reflect the fact that different areas and customer profiles require different ranges.

 

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe to our newsletters

On-Trade Regional Sales Manager

Anthony Byrne Fine Wines
West Midlands & Northants

Logistics Team Leader

Speciality Drinks
London, UK

Key Account Executive

Berkmann Wine Cellars
London, UK

London Account Manager

Speciality Drinks
London, UK

Assistant Operations Manager

Speciality Drinks
London, UK

National Account Manager

Berkmann Wine Cellars
London, UK

Sales - Global Wine Competitions

The Drinks Business
London, UK

London Business Development Manager

Vine Distribution Services
Chelmsford, UK

Customer Services Administrator

Speciality Drinks
London, UK

Off-Trade Account Manager

Justerinis & Brooks
London, UK

The International Food and Drink Event 2019

London,United Kingdom
17th Mar 2019

Vinitaly 2019

Verona,Italy
7th Apr 2019

The Wine & Spirits Show

London,United Kingdom
12th Apr 2019
Click to view more

The Prosecco Masters 2019

Deadline : 22nd March 2019

The Global Sparkling Masters 2019

Deadline : 25th March 2019

Click to view more

The Global Riesling Masters 2018

View Results

Rioja Masters 2018

View Results

Click to view more