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Familiar Trends Bring New Records in UK Grocery Market

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Familiar Trends Bring New Records in UK Grocery Market

Familiar Trends Bring New Records in UK Grocery Market
July 30
12:14 2014

The latest grocery share figures from Kantar Worldpanel, for the 12 weeks ending 20 July 2014, show familiar trends of market polarisation bringing new records for Aldi and Lidl. Grocery price inflation has fallen for the tenth successive period and now stands at 0.4%. Competitive pricing among the big grocers and deflation in the price of staple items such as vegetables, milk and bread has driven inflation to the lowest level since October 2006 when Kantar Worldpanel began this measure. As a result, market growth has fallen to 0.9% – the lowest figure for 10 years.

Edward Garner, director at Kantar Worldpanel explains: “Aldi’s 32% growth rate has lifted its market share to 4.8%; this is a new record for the retailer and means it has nearly caught up with Waitrose on 4.9%. Similarly, Lidl sales have grown by nearly 20% which means it now accounts for a record 3.6% of the grocery market. Waitrose has continued to resist pressure from the competition and has grown sales by 3.4%. This figure is well above the market average and thereby has lifted its market share.”

Among the big four grocers, both Asda and Sainsbury’s have held onto their market shares of 17.0% and 16.6% respectively. Conversely, Tesco and Morrisons have recorded losses with sales for both outlets declining by 3.8% compared with this time last year.

Iceland has posted a small drop in sales, its first since 2005, but has retained its 2.0% share.

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