FDBusiness.com

UK Grocery Market Heats Up While Promotions Cool

 Breaking News
  • Nestlé Inaugurates New Nescafé Dolce Gusto Production in Vietnam Nestlé has inaugurated a new Nescafé Dolce Gusto capsule production line in Dong Nai Province, Vietnam. The site will process an expected 2,500 tons of coffee per year (equivalent to 130 million capsules), using high quality coffee beans from Vietnam. This volume is expected to increase in the coming years. The investment reflects Nestlé’s clear focus on high-growth, [...]...
  • Pink Lemonade Yogurt? Arla Brings Indulgence to New Markets Arla Foods is to expand its successful Finnish brand, Ihana, into new markets with the premium yogurt range being launched in Denmark and the UK. Meaning ‘wonderful’ in Finnish, Ihana was launched through an extensive brand launch in 2016 in Finland with an iconic new design. Indulgence is one of the few areas in growth within [...]...
  • Process Components Announces Kemutec Expansion into Netherlands Process Components has announced the expansion of subsidiary company Kemutec in Europe, with the long-established manufacturing brand opening a new office in the Netherlands. The move forms a key part of its global strategy to extend its global territories, significantly grow its revenues and create new jobs. Kemutec has more than three decades’ worth of heritage in [...]...
  • Packaging Automation Supports the Reduction in Plastic Packaging Waste With the launch of the UK Plastics Pact to address the impact plastic waste is having on the environment, retailers and manufacturers are more conscious of single use and non-recyclable plastics and want to cater for the green consumer. The industry is turning to various kinds of eco-friendly packaging with the aim of reducing plastic [...]...
  • Glanbia Cheese Joint Venture to Build New €130 Million Mozzarella Cheese Facility Glanbia Cheese, the joint venture business between Glanbia plc and Leprino Foods, plans to build a new, world-class mozzarella cheese manufacturing facility in Portlaoise, County Laois, Ireland. A site for the new facility has been identified at the recently established Togher National Industrial Estate in Portlaoise. A total of €130 million will be invested in [...]...

UK Grocery Market Heats Up While Promotions Cool

UK Grocery Market Heats Up While Promotions Cool
August 29
12:58 2016

The latest UK grocery share figures from Kantar Worldpanel, for the 12 weeks ending 14 August 2016, show the market growing at 0.3% as an upturn in the weather spurred consumers into increasing their spend. This is the fastest acceleration for the overall market since March 2016.

Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, says: “The sun’s eventual appearance was a welcome boost to the market after a delayed start to the summer. Frozen confectionery sales grew by 23% in the last month, while chilled drinks increased by 10%. At Iceland ice cream was the fastest growing category, helping it to an overall 4.3% increase in sales on last year. Meanwhile, price cuts such as the ‘7 Day Deals’ and summer loyalty promotions helped bring an additional 129,000 shoppers through Iceland’s doors.”

Promotional sales dropped to their lowest level since September 2010 as the major retailers continue to move towards more simple pricing models. Fraser McKevitt comments: “Only 37.7% of grocery sales were bought on any kind of promotion this period – a significant decrease from highs of over 40% we were seeing in 2015.

Fewer promotions doesn’t mean consumers are paying more for their shopping but does reflect the renewed focus on own-label lines which is visible across the market. Shoppers are clearly responding to the better value offered through own label rather than money off, with own brand goods growing at both ends of the price spectrum: premium retailer brands are up by 9% and value lines up by 2%.”

Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel.

Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel.

There remains no evidence of Brexit-fuelled inflation causing food prices to rise. In fact, grocery price inflation remains negative, with a representative basket of goods 1.3% cheaper than it was last year. Once again Lidl is the fastest growing supermarket, with sales up 12.2%. The retailer witnessed strongest growth in its key produce, dairy and chilled aisles, increasing its share by 0.4 percentage points on last year to 4.5% of the market.

Sales at Aldi rose by 10.4%, with share up by 0.6 percentage points to 6.2%. Both discounters benefitted from rising premium own label sales and forward planning by having their back to school ranges in store just as schools were breaking up.

Tesco’s sales fell by 0.4%, the slowest rate of decline in six months. Fraser McKevitt comments: “Current trends suggest the decline stretching back to March 2015 could soon come to an end. Tesco’s recent product launches have been making a positive impact on its performance, with its ‘Farm brands’ finding their way into over a quarter of the Tesco baskets this period.”

Sales at Co-op rose by 2.8% compared to last year, taking its market share to 6.6% – the highest achieved since 2012. Shoppers have heeded Co-op’s call to shop little and often with this growth primarily coming from an increased number of trips to the retailer.

Sales declined at Sainsbury’s by 0.6% and at Morrisons they fell by 1.8%, leaving the retailers with a 16.1% and 10.6% share of the market respectively. Asda’s decline of 5.5% remains unchanged from last month, with share falling by 0.9 percentage points to 15.7%. Waitrose sales rose by 1.4% with market share remaining at 5.1%.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 5, 2018Int'l Food Products and Processing Technologies Exhibition (WorldFood Istanbul)
  • September 15, 2018iba
  • September 25, 2018PPMA Show 2018
  • September 27, 2018Int'l Fruit Show (eurofruit)
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements