Business

British sporting glory behind sparkling sales revival for big four supermarkets

Sales in the 'big four' supermarket soared on the back of the Rio Olympics and Paralympics according to Kantar figures

HOUSEHOLDERS toasting Olympic and Paralympic sporting success helped the so-called 'big four' supermarkets enjoy their best run of sales growth for at least two years.

Industry figures show the major grocery chains staged a fightback over the summer against discounters Aldi and Lidl, helped by surging sales of prosecco and champagne as promotions tapped into the nation's celebratory mood.

Kantar Worldpanel said sales of bubbly jumped by more than a third - 36 per cent - in the past four weeks as Team GB continued to strike gold, while alcohol sales overall rose by 8.5 per cent.

Separate data from Nielsen showed the big four players - Tesco, Sainsbury's, Morrisons and Asda - saw two months in a row of sales growth by value and volume for the first time in more than two years.

The value of sales rose 0.4 per cent year-on-year in the four weeks to September 10, while sales volumes increased by 0.3 per cent.

Market leader Tesco notched up its best performance since March 2014 thanks in part to its popular summer "drinks festival", narrowing its sales falls to 0.2 per cent year-on-year in the 12 weeks to September 11, according to Kantar.

But it continued to lose market share, falling from 28.2 per cent to 28.1 per cent, as did all its Big Four rivals.

Sainsbury's sales fell by 1.4 per cent and its share of the sector eased back to 15.9 per cent from 16.2 per cent a year earlier as it took a hit from axing its promotions in favour of everyday lower prices.

Struggling rival Asda remained under pressure as sales fell 5.2 per cent and its market share dropped to 15.7 per cent from 16.7 per cent from a year ago, while moves to trim its number of stores saw sales slip 2.3 per cent at Morrisons and its share fall to 10.4 per cent from 10.7 per cent.

Kantar said Morrisons is seeing a turnaround, though, recently bagging a third consecutive quarter of like-for-like sales growth.

Upmarket chain Waitrose was also boosted by booze as its "half price event" saw sales rise 3.4 per cent year-on-year over the 12 weeks, helping the retailer reach a new record market share of 5.3 per cent, up from 5.2 per cent a year ago.

Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said: "While overall sales growth has been slow, consumers have been keen to celebrate Britain's Olympic and Paralympic golden summer."

In spite of the resurgent performance from the market leaders, Aldi and Lidl continued to steal market share, according to Kantar.

Aldi grew sales by 11.6 per cent, boosting its share to 6.2 per cent from 5.6 per cent a year earlier, while Lidl's sales powered 9.5 per cent ahead, with its share rising to 4.6 per cent from 4.2 per cent.

Shoppers now spend an average of £19.24 when visiting the discount retailers, up 4 per cent, which is "not to be sniffed at" at a time of falling prices, according to Kantar.

But Mike Watkins, Nielsen's UK head of retailer and business insight, said: "With both value and volume growth most weeks since the middle of July we're seeing the green shoots of recovery for the leading supermarkets in their battle against the discounters and price deflation."

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