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Big Four see market share slip as discount stores increase sales, Kantar reveals

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Big Four see market share slip as discount stores increase sales, Kantar reveals

Tue, 08 April 2014
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Big Four see market share slip as discount stores increase sales, Kantar reveals
Sainsbury (J) Quote more

Price: 242.10

Chg: -7.90

Chg %: -3.16%

Date: 14:25

FTSE 100 Quote

Price: 6,386.22 Chg: 13.89 Chg %: 0.22% Date: 14:26

The so-called 'Big Four' supermarkets have suffered a further reduction in their market share as the likes of Aldi and Lidl continue to deliver strong growth, data revealed Tuesday.

According to research carried out by Kantar Worldpanel, in the 12 weeks ended March 30th, German discount store Aldi grew its market share to 4.6%, its highest level to-date after it saw growth of 35.3%. Its peer Lidl was close behind with 3.4% of the market.

Wal-Mart owned Asda is the "most resilient" of the top four grocery retailers, Kantar said, but noted that each of the main players in the industry, namely Tesco, Sainsbury, Morrison and Asda, suffered declining sales in the three-month period.

Edward Garner, Director at Kantar Worldpanel, said: “Amid a challenging market backdrop, individual retailer growth might be expected to be restricted. This is certainly not the case for Aldi which achieved its highest ever growth of 35.3% [...] Lidl also experienced strong growth in a record breaking month."

He added: “All of the 'Big Four' supermarkets have faced declining sales over the past 12 weeks, which has been accentuated by the late falling of Easter."

The report also noted that grocery inflation for the period remained at its lowest level since July 2010, at 1.8%.

Shore Capital cautious about sector

The figures were released as Clive Black, the Head of Research at Shore Capital, commented that "caution persists in the sector" as the big players demonstrate a growing trend toward price cutting.

"All in all," he added, "without strengthening demand and a stabilisation of the pricing environment, both of which are hard to wholly comprehend at this stage, the earnings outlook for UK listed supermarkets appears highly constrained. Hence, our ongoing caution on the sector".

NR

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