Price cutting good for shoppers and stores
CHRISTMAS shoppers saving millions of pounds in festive tipples, food and gifts have sent sales soaring at the UK’s top supermarkets.
According to new figures from research firm Kantar Worldpanel, the amount of cash British consumers spent in supermarkets rose 0.1 per cent in the 12 weeks to December 7.
That’s a large improvement on the previous Kantar figures for the three months ending November 9 when sales dropped 0.2 per cent, the first decline experienced by the industry since records began in 1994.
Supermarkets Lidl and Aldi led the way, toasting a record combined market share of 8.6 per cent during the period, up 1.5 per cent over the past 12 months. Lidl sales rose 18.3 per cent with Aldi, helped by its Christmas TV advertising campaign featuring musician Jools Holland, up 22.3 per cent.
Tesco, under new chief executive Dave Lewis, also fared well with sales slowing 2.7 per cent – its best result since June and a huge pick-up from its 3.7 per cent dip to November 9.
Cheaper groceries are an early Christmas present for shoppers. We expect grocery deflation to continue well into 2015 as the price war rumbles on
Kantar said it was “showing signs of stabilisation”. Morrisons dipped 3.2 per cent, with Sainsbury’s falling 1.8 per cent, Asda off 1 per cent and Iceland 1.8 per cent chillier. Upmarket supermarket Waitrose gained 6 per cent. Kantar said supermarkets increasing their discounts ahead of Christmas had led to like-for-like prices falling a record low 0.7 per cent compared with this time last year.
That saved shoppers a combined £182million over the last few weeks. “Shoppers are putting slightly more in their baskets this year as the UK’s supermarket price war ramps up,” said Fraser McKevitt, head of retail and consumer insight at Kantar. “Cheaper groceries are an early Christmas present for shoppers. We expect grocery deflation to continue well into 2015 as the price war rumbles on.”
James Grzinic analyst at Jefferies, who said discounts around Black Friday would have helped the industry’s figures, picked out Tesco for stirring non-food demand up 2.3 per cent and Sainsbury’s up 7.9 per cent.
He said: “It’s Tesco’s most successful non-food performance since Christmas 2011. It confirms its recent commentary around improved trading momentum. Sainsbury’s was also very strong.”
