Supermarkets hope for Euro 2024 boost as Asda and Co-op lose ground
Asda and the Co-op are the only major supermarket brands in the UK to have lost market share over recent weeks, according to new figures.
According to the latest data from Kantar, Asda’s market share dropped by four per cent in the 12 weeks to June 9, 2024, compared to the same period in 2023, as its sales went from £4.5bn to £4.3bn.
The Co-op’s share also decreased by 2.3 per cent over the same period with its sales falling from £1.9bn to £1.8bn.
By contrast, Ocado’s market share jumped by 10.7 per cent, with its sales going from £549m to £608m, while Lidl’s also rose by 8.1 per cent as its sales increased from £2.5bn to £2.7bn.
Wet spring dampens supermarket sales
Katar’s data also shows that take-home grocery sales rose by just one per cent over the four weeks to June 9, 2024, marking the slowest increase since June 2022 as poor weather and falling inflation impacted the sector.
The growth in footfall has also stalled, according to the figures, with the average shopper visiting a supermarket 16.3 times this month – down from 16.4 in June last year.
Fraser McKevitt, head of retail and consumer insight at Kantar, said: “The sixth wettest spring on record hasn’t just dampened our spirits leading into summer, it’s made a mark on the grocery sector too as it seems Britons are being put off from popping to the shops.
“We’re not yet reaching for those typical summertime products and are making some purchases you wouldn’t expect in June.
“Consumers bought nearly 25 per cent fewer suncare items this month compared with last year, while prepared salads dipped by 11 per cent. On the other hand, warming fresh soup sales jumped by almost 24 per cent.”
‘Cost-of-living crisis is far from over’
McKevitt added: “The cost-of-living crisis isn’t over – far from it. 22 per cent of households say they’re struggling, meaning that they aren’t able to cover their expenses or are just making ends meet.
“However, there are positive signs that many of us no longer feel the need to restrict our spending quite so much, with lower inflation helping to ease the pressure on people’s pockets.
“In May, we recorded the largest jump in the number of comfortable households since January 2023, rising by two percentage points on February 2024’s figure.
“Costs are falling in nearly one third of the grocery categories we track, including toilet tissues, butter and milk. That’s a big increase from last year, when just one per cent of markets were declining.”
Supermarkets hoping for a Euro 2024 boost
Kantar added that supermarkets will be waiting to see if positive performances by England and Scotland can deliver a win at the tills, too.
McKevitt said: “The grocers are looking to entice in consumers enjoying this year’s tournament, with the proportion of beer and lager sales on promotion leaping up to over 40% in the latest four weeks.
“Retailers will be competing with fans heading out of the house to watch the football as well as with each other.
“Pubs especially could benefit from a boost – whether or not football comes home.
“Throughout the last tournament held in 2021, sales of food and non-alcoholic drinks in pubs soared by 60 per cent compared with the average month that year.”
How did Tesco, Morrisons, Waitrose, Iceland and Aldi perform?
Aldi, the fourth largest retailer by consumer spend, boosted sales by 0.8 per cent and now has a share of 10 per cent.
Tesco achieved its highest market share since February 2022, growing 0.6 percentage points to 27.7 per cent and pushing up sales by 4.6 per cent.
Sainsbury’s saw its sales rise by 4.9 per cent to account for 15.2 per cent of the market, up from 14.9 per cent last year.
Morrisons’ sales rose by 1.1 cent and its share now stands at 8.7 per cent.
Iceland boosted sales by 4.4 per cent and holds 2.4 per cent of the market, up from 2.3 per cent a year ago.
This marks the first annual market share increase for the frozen-food specialist since March last year.
Waitrose welcomed 188,000 new shoppers through its doors over the latest 12 weeks, a greater increase than any other grocer.
With its sales growing by 3.5 per cent, the retailer has a 4.5 per cent share.