The grocery market fell into decline last month, recording a 0.2% drop in sales for the 12 weeks to 9 November, according to Kantar Worldpanel.
Kantar said the negative figure was the first it had recorded since its records began in 1994.
Asda was the best-performing grocer during the 12-week period, matching the market by also reporting a 0.2% sales decline. Sainsbury’s, meanwhile, saw its sales drop 2.5%, while Morrisons and Tesco’s fell 3.3% and 3.7% respectively.
Tesco’s market share dropped from 29.8% a year ago to 28.7%, though Kantar pointed out the rate it was losing market share had slowed. Sainsbury’s market share dropped from 16.8% a year ago to 16.4%, while Morrisons fell from 11.5% to 11.1%. Asda’s share remained at 17.2%.
In stark contrast, Aldi’s sales jumped 25.5% and it posted a record market share of 4.9%. Lidl’s sales grew by 16.8% and Waitrose’s by 5.6%.
“The declining grocery market will be of concern to retailers as they gear up for the key Christmas trading season,” warned Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel.
“The fight for a bigger share of sales has ignited a price war which means an average basket of everyday goods such as milk, bread and vegetables now costs 0.4% less than it did this time last year.
“This is bad news for retailers, but good news for shoppers with price deflation forecast to continue well into 2015.”
Total Till Roll - GB Consumer Spend
Source: Kantar Worldpanel
** = Percentage Share of Total Grocers
| 12 weeks to 10 November 2013 | 12 Weeks to 09 November 2014 | % Change | |||
|---|---|---|---|---|---|
| £000s | % ** | £000s | % ** | % | |
| Total Till Roll | 32,342,640 | 32,464,300 | 0.4% | ||
| Total Grocers | 24,915,760 | 100.0% | 24,876,830 | 100.0% | -0.2% |
| Total Multiples | 24,395,710 | 97.9% | 24,368,930 | 98.0% | -0.1% |
| Tesco | 7,427,304 | 29.8% | 7,149,309 | 28.7% | -3.7% |
| Asda | 4,276,248 | 17.2% | 4,266,454 | 17.2% | -0.2% |
| Sainsbury’s | 4,186,914 | 16.8% | 4,082,849 | 16.4% | -2.5% |
| Morrisons | 2,855,745 | 11.5% | 2,762,896 | 11.1% | -3.3% |
| The Co-operative | 1,574,040 | 6.3% | 1,553,987 | 6.2% | -1.3% |
| Waitrose | 1,201,202 | 4.8% | 1,268,506 | 5.1% | 5.6% |
| Aldi | 961,395 | 3.9% | 1,206,706 | 4.9% | 25.5% |
| Lidl | 751,201 | 3.0% | 877,031 | 3.5% | 16.8% |
| Iceland | 491,597 | 2.0% | 487,689 | 2.0% | -0.8% |
| Farmfoods | 173,905 | 0.7% | 166,145 | 0.7% | -4.5% |
| Other Multiples | 496,157 | 2.0% | 547,358 | 2.2% | 10.3% |
| Symbols & Independents | 520,051 | 2.1% | 507,898 | 2.0% | -2.3% |
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