New data revealed on Tuesday that growth has slowed for supermarkets in the UK as political uncertainty and a very damp autumn provided a backdrop for sales.
The latest Grocery Market Share report by Kantar revealed that year-on-year supermarket sales grew by 1.0% over the past 12 week period.
“This period saw an increased focus on seasonal events and promotions. The final quarter of the year is associated with holidays and festivities, and retailers are always looking for ways to capitalise on seasonal events to attract shoppers,” Kantar said.
Pumpkin sales grew 6% this year in October in preparation for Halloween celebrations. Indeed, the data revealed that over a tenth of British households brought home a pumpkin.
Kantar said that attention has already turned towards Christmas – £17 million has already been spent on mince pies this year.
“It’s never too early to start thinking about Christmas, particularly for grocery retailers. With many supermarkets already unveiling their festive advertising campaigns, the starting gun has been fired on the race to be Christmas number one,” Kantar added.
The data reveals that Lidl, which has worked to encourage larger shopping trips this year, was the fastest growing bricks and mortar retailer across the period, with sales increasing by 8.8%.
Meanwhile, Aldi saw a sales growth of 6.7%.
The four largest retailers struggled, Kantar said. Asda’s sales declined 1.2% and Morrisons’ dropped 1.7%. Additionally, Tesco saw its sales drop by 0.6% and Sainsbury’s decreased by 0.2%.
Just last week, Sainsbury’s revealed a decline in profits in its half year results.
Meanwhile, Morrisons said at the start of September in its half year results that pre-tax profits rose, though it warned that the extended Brexit process has weighed on customer behaviour.
Shares in WM Morrison Supermarkets plc (LON:MRW) were down on Tuesday, trading at -0.10% as of 10:53 GMT. Shares in Tesco plc (LON:TSCO) were also down, trading at -1.44% as of 10:54 GMT Tuesday. J Sainsbury plc shares (LON:SBRY) were up on Tuesday, trading at +1.57%.
