'Big four' grocers facing tough Christmas after sales fall again, while German discounters gain
The 'big four' supermarkets are facing a tough Christmas after their sales fell again over the autumn – while Co-op and the German discounters soared.
Tesco, Sainsbury's, Asda and Morrisons all lost market share in the 12 weeks to November 4, as did Waitrose, according to data company Kantar.
At the same time, Aldi, Lidl and the Co-op saw sales jump, along with Iceland and Ocado.
The 'big four' are also being squeezed by Marks & Spencer, which has switched strategy to focus on families doing one big weekly shop.
Tesco, Sainsbury's, Asda and Morrisons all lost market share in the 12 weeks to November 4, as did Waitrose. At the same time, Aldi, Lidl and the Co-op saw sales jump
Leading supermarkets are gearing up for a Christmas price war with big savings expected, particularly on fresh produce.
The German supermarkets claim to undercut the big players in the UK on price by as much as a quarter, but the 'big four' are responding with cuts to the price of their basic ranges.
In the Christmas period the average family spends £380 on groceries in December, and there has already been £17million spent on mince pies and £3million on Christmas puddings this year.
Fraser McKevitt, head of retail and consumer insight at Kantar said: 'The starting gun has been fired on the race to be Christmas number one. Shoppers will spend nearly £11bn in that month, showing how it's a crucial period for retailers.'
Sales at Asda and Morrisons fell by 1.2 per cent and 1.7 per cent respectively in the 12 weeks to November 4, while Sainsbury's and Tesco fell by 0.2 per cent and 0.6 per cent.
By contrast, Aldi saw sales growth of 6.7 per cent while Lidl's grew at 8.8 per cent, pushing their combined market share to 13.9 per cent.
Overall, the 'big four' market share fell from 68.8 per cent in autumn last year to 67.6 per cent this year. Aldi is now the UK's fifth-biggest supermarket, while Lidl is seventh but closing in on Co-op, which is sixth.
Co-op has quietly outperformed its larger rivals. It has grown continuously since May 2018 and sales increased again this period with year-on-year growth currently standing at 4.4 per cent.
Marks & Spencer, as it prepares to launch its food delivery business with Ocado next year, is starting to fight for a share of the family market.
It is reducing prices on 400 of its most popular items by more than 10 per cent.
And, in a direct challenge to its larger competitors, it yesterday announced a new advertising campaign focusing on price, offering competitively priced basics such as eggs, milk and whole chickens.
Ocado was the fastest-growing supermarket, increasing its sales by 13.5 per cent compared to last autumn. It now has 1.4 per cent of the market.
Kantar reported that pumpkin sales were up by 6 per cent this year, with more than a tenth of British households taking one home.
In the past decade, pumpkin sales have increased by almost two-thirds.
***
B&M bucked the gloom with like-for-like sales growth of 3.7 per cent in UK in the first half of the year.
Simon Arora, who co-founded it in the 1970s, said: 'We're in the same fast lane as Aldi, Lidl and Primark. The march of the discount retailers continues.'
Profits fell 70.5 per cent to £32.2million because of writedown on Jawoll, the German discounter. Its shares fell 5.6 per cent, or 21.2p, to 356.8p.
Most watched Money videos
- Aston Martin unveils new Vantage sports car capable of 202mph
- How to invest to beat tax raids and make more of your money
- Iconic Dodge Charger goes electric as company unveils its Daytona
- Mini unveil an electrified version of their popular Countryman
- Would you retire abroad for cheaper living costs?
- Pair of rare 1980s Ford Sierra RS500 Coswotths head to auction
- German car giant BMW has released the X2 and it has gone electric!
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- Steve McQueen featured driving famous stunt car in 'The Hunter'
- BMW's Vision Neue Klasse X unveils its sports activity vehicle future
- The new Volkswagen Passat - a long range PHEV that's only available as an estate
- MG unveils new MG3 - Britain's cheapest full-hybrid car
- Four in 10 mortgages are being taken out by borrowers who...
- Trader Tom Hayes vows to fight on in bid to clear his...
- Morrisons boss says turnaround is in 'full swing' as...
- Endeavour Mining probe finds more 'secret' payments worth...
- Competition watchdog clears Aviva's £460m acquisition of...
- Car crash victims to get faster, higher compensation...
- Trump's social media firm soared on its stock market...
- H&M profits spring back to life as it seeks to fight off...
- Barclays debanked our tennis club - £120 compensation...
- MARKET REPORT: Carnival set for record year as bookings boom
- Debt fuelled deals are bringing great British firms...
- Insurance market Lloyd's of London toasts best result 'in...
- D-day for crypto wunderkind who crashed to earth: Sam...
- Commodities broker Marex Group snubs City as it files...
- Yorkshire BS launches savings account to go with 99%...
- Spirent ditches Vivai as Keysight gatecrashes deal with...
- Where in the UK do homes sell fastest... and slowest?
- Thames Water shareholders refuse £500m lifeline plea