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British grocery market returns to slow growth

New Year health kicks contributed to a strong performance across fresh foods & helped British grocery market return to slow growth.

Sales of fresh fruit and of vegetables have both grown 5% in the British grocery market, according to Kantar Worldpanel grocery share data for the 12 weeks to January 31.

The research firm said consumers had clearly sought a healthier start to the year and in doing so turned to fresh foods – particularly fruit and vegetables.

These New Year health kicks contributed to a strong performance across fresh foods, but the revenue growth from fruit and vegetables – which was shared across both traditional and discount retailers – was particularly significant as both categories are still experiencing like-for-like deflation. Similar growth occurred in nuts, fresh poultry and fish but the overall grocery market’s growth was slight, with a total increase of 0.2%, said head of Retail and Consumer Insight, Fraser McKevitt.

British grocery market share

  • The Co-operative: for the first time since 2011 the Co-operative was the fastest growing non-discounter, increasing sales by 1.4%. The convenience-focused grocer grew its own-label sales by 7%, with sales up fastest in the fresh and chilled part of the store.
  • Sainsbury’s: increased its sales for the sixth period in row, growing by 0.6% with a resulting market share increase of 0.1 percentage points to 16.8%.
  • Tesco: showed signs of improvement – while revenues fell by 1.6% .These are the best numbers posted by the retailer since September of last year.
  • Waitrose: its market share remained static at 5.2%, sales increased by 0.1%. This makes it the 91st consecutive period of growth for the retailer.
  • Discount retailers: Aldi and Lidl: saw their growth accelerate – Lidl to 18.7% and Aldi to 13.7%. Their share of the market increased by 0.7 percentage points, with Lidl’s rising to 4.2% and Aldi’s to 5.6% – a dip from the 10.0% combined market share high they experienced at the end of 2015.
  • Morrisons: the sales decline lessened to 2.2%, while market share fell by 0.3 percentage points to 10.8%.
  • Asda: recent announcement of renewed price cuts has not yet had time to materially affect its latest 12 week figures, with sales falling by 3.8% and share falling back to 16.2%.

Read more at: Health kick contributes to grocery market growth from Kantar Worldpanel

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Sainsbury’s, Lidl and Aldi gain share in UK grocery market

Kantar use this

“Not much festive chair for supermarkets collectively this month with growth falling to a feeble 0.1%.” That’s how Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, began discussing the company’s latest data on grocery share in the UK, covering  the 12 weeks to December 6.

Furthermore, like-for-like prices had fallen by 1.9% in the previous month, he said.

But in among the gloom, Sainsbury’s was the stand-out performer. It boosted sales by 1.2%, growing across its convenience, supermarket and online businesses and increasing its market share to 16.7%.

Meanwhile it was a familiar story of falling sales and shrinking share for Tesco, Asda and Morrisons, but for Aldi and Lidl, one of double-digit growth and they “are surely looking forward to a record Christmas market share,” McKevitt said.

Listen to his analysis and read more here: http://www.kantarworldpanel.com/en/Press-Releases/Sainsburys-stands-out-in-the-run-up-to-Christmas