#tesco hitting its highest market share since February 2022, and accounting for over half of total market sales growth, is the highlight from Worldpanel by Kantar's UK market data for 12 weeks ending 9th June released this morning.
12-wk sales grew by 2.4%, down from the last 12-wk period figure of 3.6%. A continued fall in grocery inflation (2.1% across the last 4 weeks), along with a slight decline in the average number of supermarket visits (16.3 times this month vs. 16.4 in June 2023) has resulted in sales over the last 4 weeks only growing by 1.0%.
Tesco’s market share of 27.7% is their highest since Feb 2022. Their continued 3-pronged pricing strategy (Clubcard prices, Aldi Price Match, and Everyday Low Prices) is clearly a winning formula. Of the overall growth in total market value year-on-year (£800M), Tesco have contributed over a half (£416M).
#lidl continue to out-perform #aldi, with impressive sales growth of 8.1%, resulting in their market share growing by 0.4%pts YoY. Alongside their increasingly popular loyalty app, Lidl Plus, and their market-leading in-store bakery offer, Lidl are also delivering great differentiation from Aldi (and the other supermarkets) with their very impressive Country Food Themes. One this month was their “Italiamo” Italian theme – over 50 products across chill, frozen, and ambient – brilliantly merchandised in-store, encouraging impulse purchases and resulting in increased basket spend.
Aldi’s growth, at just 0.8%, is its lowest since January 2022. They are clearly suffering from all four of the big supermarkets’ price match schemes, so much so that their latest ad campaign takes a pop at such schemes. This may only encourage growth in the number of products included in the Aldi (& Lidl) Price Match campaigns, as recently seen at Tesco, who have added over 100 more products to their Aldi Price Match, all from their standard-tier #privatelabel, including, for the first time, price matching four products from their Plant Chef #vegan range.
Sainsbury’s continue to deliver market share growth, up 0.3% pts YoY, whilst #asda continue to struggle, with sales down 4% YoY (-£184M across the 12-week period). #morrisons are faring slightly better (sales up 1.1%). Their business certainly has a spring in its step with new CEO, Rami Baitiéh, making an impressive address at the recent Morrisons/IGD conference, clearly intent on placing the Morrisons customer at the heart of every decision made in a bid to turn the business around.
Finally, #iceland are one of the five retailers delivering a YoY share increase, with impressive sales growth of 4.4%. Their private label strategy includes great multi-buy offers on their standard tier range alongside an ever-increasing range of partnerships with other leading brands, resulting in some super #newproductinnovation and differentiation from the competition.
#ukretail #supermarkets #ownbrand #waitrose #coop #ocado International Private Label Consult (IPLC)
