Latest Kantar: Take-home UK grocers sales up 6.5% (4 weeks to 20 April) - Easter later + uptick in promotions.
Sales rise because of 3.8% grocery price inflation vs recent low of 1.4%, Oct 2024.
Easter eggs spending up 11% vs 2024. Fraser McKevitt, head of retail and consumer insight at Kantar: “Chocolate confectionery prices rose by 17.4% this period, the fastest of any category, but that didn’t stop the British public treating themselves this Easter. The volume of chocolate eggs sold through supermarket tills still grew by 0.4% on last year, while at the dinner table, lamb was the most popular fresh meat joint, followed by beef and pork.”
Spending on promotion reached 29.7%, its highest level this year.
“The grocers have been sharpening their pricing strategies to stay competitive in the fight for footfall."
Price cuts were the main driver of promotional growth. Often linked to loyalty cards, spending on these deals up £347m. (Tesco and Sainsbury’s nearly 20% of items sold on price match, in 2/3 of baskets.)
“However, not just re price perceptions. Shoppers want quality too, particularly on special occasions, and we can track that, for example, in the rapid growth of premium own label in the latest four weeks at 23.2%.
"Retailers need to be seen to be offering great value, but it’s a fine tightrope to walk, particularly as they manage their own business costs.”
Lidl had fastest rise in footfall (12 weeks to 20 April) shoppers visits average of 8.8 times resulting in sales up 10.1%, to a 8.0% market share.
Aldi’s above-the-market sales growth of 5.9%, an 11.0% share.
Ocado was the fastest-growing retailer – held continuously for nearly a year – after its sales grew by 11.8%.
Spending on groceries at M&S grew by 14.4%.
Tesco’s sales increased by 6.0%, lifting its market share to 27.8%, while sales at Sainsbury’s rose by 4.4%.
Meanwhile, early signs that Asda’s price rollback campaign might be having an impact on its performance. Its sales still fell by 3.8%, but this is an improvement on the declines of over 5% reported in recent months.
NamNews Implications:
“The grocers have been sharpening their pricing strategies to stay competitive in the fight for footfall."
Price cuts were the main driver of promotional growth. Often linked to loyalty cards, spending on these deals up £347m. (Tesco and Sainsbury’s nearly 20% of items sold on price match, in 2/3 of baskets.)
“However, not just re price perceptions. Shoppers want quality too, particularly on special occasions, and we can track that, for example, in the rapid growth of premium own label in the latest four weeks at 23.2%.
"Retailers need to be seen to be offering great value, but it’s a fine tightrope to walk, particularly as they manage their own business costs.”
Lidl had fastest rise in footfall (12 weeks to 20 April) shoppers visits average of 8.8 times resulting in sales up 10.1%, to a 8.0% market share.
Aldi’s above-the-market sales growth of 5.9%, an 11.0% share.
Ocado was the fastest-growing retailer – held continuously for nearly a year – after its sales grew by 11.8%.
Spending on groceries at M&S grew by 14.4%.
Tesco’s sales increased by 6.0%, lifting its market share to 27.8%, while sales at Sainsbury’s rose by 4.4%.
Meanwhile, early signs that Asda’s price rollback campaign might be having an impact on its performance. Its sales still fell by 3.8%, but this is an improvement on the declines of over 5% reported in recent months.
NamNews Implications:
- Key standout has to be that Asda is the only retailer showing a fall in 12-week YOY sales…
- …indicating the scale of the challenge facing the retailer.
- A key problem is the quality of rivals by comparison…
- …along with the discounters now powering ahead amidst continuing market uncertainty.
- And a return to higher inflation, certain for further increases when additional taxes are fully reflected in the stats.
- The heavy investment in price cuts by rivals will add further pressure on Asda.
- Meanwhile, the rapid growth in premium own label poses a continuing challenge for the size of brand premia.
- Meaning consumers are less willing to accept ‘excess’ prices for brands vs their own label equivalents…
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