FDBusiness.com

UK Grocery Market Grows as Price Rises Continue

 Breaking News
  • Growing British Appetite For Sports Nutrition Once the preserve of athletes and bodybuilders, new research from Mintel finds that many of the UK’s fitness lovers are using sports nutrition products. Indeed, almost three in 10 Brits (27%) use sports nutrition products*, rising to two in five (39%) Brits who exercise more than once a week. Overall, it is the UK’s young men who [...]...
  • Senior Leadership Changes at PepsiCo Ramon Laguarta. PepsiCo has announced three senior leadership appointments that support the company’s strategic priorities and growth agenda. Ramon Laguarta, currently CEO, Europe Sub-Saharan Africa (ESSA), will become president of PepsiCo, reporting to chairman and chief executive Indra Nooyi. In his new role, Ramon Laguarta will shape PepsiCo’s corporate strategy, work closely with business units to deliver [...]...
  • Scientists Investigate Origin of Isolated BSE Cases The European response to bovine spongiform encephalopathy (BSE) after the crisis of the 1980s has significantly reduced prevalence of the disease in cattle. However, isolated cases are still being reported in the EU and for this reason the European Commission has asked EFSA to investigate their origin. The key measure for controlling BSE in the EU is [...]...
  • Adnams Reveals “First Rate” Designs For Vodka and Premium Gin Brands Adnams, the English brewer and distiller, has revealed new and updated bottle designs for its Longshore Triple Malt Vodka and First Rate Triple Malt Dry Gin. The vodka, which was awarded the prestigious Vodka Trophy at the 2014 International Wine and Spirit Competition (IWSC), and the gin are the latest spirits to receive a makeover [...]...
  • BrewDog Appoints XPO Logistics to Manage Chilled Warehousing Contract XPO Logistics, a leading global provider of transport and logistics solutions, has signed a contract with craft beer pioneer BrewDog, one of the UK’s fastest-growing food and drinks companies. XPO will provide class-leading temperature-controlled warehousing for BrewDog’s stockholding of craft beer at a multi-user, 125,000 square foot facility in Mossend, Scotland. The Aberdeen-based brewery – founded in 2008 [...]...
  • UK Not Ready For Brexit’s Impact on Food The UK is unprepared for the most complex ever change to its food system, which will be required before Brexit, according to a new briefing paper published by SPRU, the Science Policy Research Unit at the University of Sussex. The report, by leading food policy specialists Professor Erik Millstone (University of Sussex), Professor Tim Lang [...]...

UK Grocery Market Grows as Price Rises Continue

UK Grocery Market Grows as Price Rises Continue
March 09
12:04 2017

The latest grocery market share figures from Kantar Worldpanel, for the 12 weeks ending 26 February 2017, show supermarket sales grew at their fastest rate since June 2014 – up by 2.3% compared to the same time last year.

Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, explains: “Like-for-like inflation has doubled since last month to stand at 1.4% during the past 12 weeks. However, when placed in their longer-term context, these price increases are still fairly minimal.

“Staples such as butter, tea and fish all saw prices rise by more than 5% during the past 12 weeks, as fruit and vegetables – many of which are imported – also saw an uptick in price. However, it’s important to point out that inflation is still far from universal, with prices actually falling across a number of categories including crisps, bacon and eggs.

“While consumers may be starting to feel a very slight pinch, increased inflation has led to overall market growth. Simultaneously, combined sales at the UK’s four largest supermarkets increased by 0.5% year on year. This is a timely reminder that despite the huge interest in the discounters during recent years the big four remain a force to be reckoned with: they still hold just over 70% of the market, with almost 99% of the population shopping in a Tesco, Sainsbury’s, Asda or Morrisons during the latest quarter.”

Individually, Morrisons grew ahead of the market with a sales increase of 2.6% signalling its fastest growth in five years. Holding market share steady year on year at 10.6%, the retailer’s positive bricks and mortar performance was buoyed further by the continued rapid expansion of its e-commerce business.

Tesco increased sales for the sixth period in a row – a run it hasn’t experienced since January 2014 – although this wasn’t enough to stop the grocer’s market share slipping by 0.5 percentage points to 27.9%. Asda was the only retailer to see sales fall during the past 12 weeks, but a decline of just 0.8% represents a significant improvement and is the grocer’s best performance since November 2014.

Fraser McKevitt continues: “To the catchy soundtrack of its new ‘food dancing’ advertising campaign, Sainsbury’s returned to growth for the first time since March last year, with sales up by 0.3%. At the same time, its market share slipped by 0.3 percentage points leaving the grocer with 16.5% of the market.

“Lidl became Britain’s fastest growing supermarket during the past 12 weeks – with sales up by 13.0% – while Aldi grew almost as quickly, increasing sales by 12.9% to reach a record market share of 6.3%. Also growing ahead of the market was Iceland, with sales up 8.8%. Meanwhile Co-op and Waitrose both increased sales by 1.7% and 2.9% respectively.”

There were signs of changing shopping habits too. Having peaked at just over 40% of sales in 2015, the proportion of groceries sold on promotion continues to decline, falling to 34.3% during the past 12 weeks – its lowest level since October 2009. The most dramatic shift has been a move away from multi-buy promotions, with shoppers spending half a billion less on these types of deals than last year. Fraser McKevitt comments: “Despite the general move away from multi-buys, meal deals remain popular – particularly around Valentine’s Day. Premium meal deals, which offer dinner for two at a price point of £10 or above, were bought by nearly 2 million consumers in February as Valentine’s Day offered a welcome opportunity to splash out.

“In fact, British diners spent £9 million more on premium meal deals than during the same period last year, suggesting that celebrating special occasions at home is an increasingly appealing option. 1.2 million shoppers bought still wine as part of their premium meal deal, 700,000 plumped for sparkling wine and 840,000 bought chocolates.”

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • July 21, 2017Snackex
  • August 4, 2017The Whiskies & Spirits Conference
  • September 11, 2017drinktec
  • September 13, 2017FI Asia
AEC v1.0.4

The Magazine

F&D Business Preferred Suppliers

Advertisements