Big Four struggle amid ongoing grocery deflation

The latest grocery share figures from Kantar Worldpanel for the 12 weeks ending 24 April 2016 show a drop in sales for all four major supermarkets compared with last year.

Image: Mark Hillary
Image: Mark Hillary

Kantar head of retail and consumer insight Fraser McKevitt said: "Consumers are enjoying a golden period of cheaper groceries with like-for-like prices falling every month since September 2014.

"Yet lower prices are not the result of more groceries being bought on promotion. Retailers are aiming for simplicity in their pricing and only a quarter of promotional spend is now through multi-buy deals."

The Co-operative saw sales growth of 3.3 per cent following a programme of store refurbishment and improved ranges.

Among the discounters, Lidl grew sales by 15.4 per cent as shopper numbers increased by 648,000, while Aldi's sales were up 12.5 per cent as it added an additional 732,000 shoppers in the last 12 weeks – more than any other retailer.

Meanwhile Sainsbury's has posted a 1.1 per cent drop in turnover for the year to 12 March, and a drop in pre-tax profits of £13.8 per cent, though volumes and transactions were up.

During the period it opened 69 convenience stores and also saw online sales rise by nearly 9 per cent.

"Innovative, healthy prepared vegetables such as courgetti (spiralised courgette) and boodles (butternut squash noodles) significantly exceeded sales expectations since launch in January," it added.

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