Value of north's grocery market drops by 0.4 per cent in 2019

Growth in the north's grocery market slowed to 0.4 per cent during the yea to December
Gary McDonald Business Editor

GROWTH in the north's grocery market slowed to 0.4 per cent during the 52 weeks to December 29, figures from consumer analysts Kantar show.

Volume sales have also continued to decline and are now down 0.4 per cent year on year. Despite prices rising on average by one pence per item, this was offset by customers adding fewer goods to their baskets.

Charlotte Scott, consumer insight director at Kantar, said: “Tesco maintained its status as the only one of the three largest retailers to achieve growth in the period, increasing its market share to 35.6 per cent with sales up by 1.5 per cent.

“Falling basket sizes were outweighed by shoppers making an average of seven more trips to the retailer than they did this time last year.

“Sales at Asda and Sainsbury's dropped this month by 2.5 and 1.2 per cent respectively.

“Although basket sizes are now growing at Asda – up by 1.4 per cent – the retailer has struggled with a loss of shoppers as penetration fell by 2.5 per cent.

“Sainsbury's, on the other hand, has seen basket sizes fall, down by 4.6 per cent. An increase in shopper frequency and pack price, up by 1.1 per cent, was not enough to outweigh the trend towards smaller trips.”

She added: “Lidl was again the best performing retailer this period with sales 4.2 per cent higher than the previous year, helping it gain 0.2 percentage points of market share.

“Although basket sizes at the retailer fell into decline, this was outweighed by a higher number of shoppers.

“While people shopping at Lidl bought less, the retailer did benefit from a rise in pack prices, suggesting that shoppers were choosing more premium options.”

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