Kantar data shows rise of Lidl and Aldi in British supermarket industry

Grocery sales in the UK rose to record numbers in the three month period to December 29, however this was the slowest rate of growth since 2015.

Data from Kantar showed that the big four grocery shops recorded fall in market shares.

This comes at no surprise, and evidently data shows that the German counterparts such as Lidl and Aldi have captivated the British market.

Notably, Ocado Group PLC (LON:OCDO) showed the fastest sales rise along with the German firms.

Ocado saw a rise of 13% in year on year sales from £345 million to £389 million, as it increased its market share to 1.3% compared to the 1.2% figure last year.

For the 12 weeks ending December 29, supermarket sales rose to £29.35 billion from £29.30 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.”

Morrisons (LON:MRW) saw their market share slip 0.3% to 10.3%, as sales slumped by 2.9% to £3.01 billion compared to the £3.11 billion figure a year ago.

Asda also saw a similar slip, as the firm totaled its market share at 14.8% representing a 0.4% slip from the 15.2% figure a year ago.

Asda, who are owned by Walmart (NYSE: WMT) reported a sales decline of 2.2% year on year to £4.35 billion.

Tesco PLC (LON:TSCO) who are the biggest of the big four, also saw a slip in their market share.

The FTSE 100 listed firm saw its market share slip from 28.4% to 27.4% as sales fell 1.5% to £8.03 billion.

Sainsbury’s (LON:SBRY) did not see such a significant fall, as sales declined 0.7% year-on-year to £4.69 billion from £4.73 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 saw their market share rise to 7.8% during the period, as Lidl also grew to 5.9% from their previous 5.3% showing significant gain for the German firms.

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.

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