Recent data reveals a decrease in market shares for Asda and Aldi, impacting their position.
- Asda’s market share dropped from 13.1% to 11.8% in a 12-week span ending 7 September.
- Aldi also experienced a decline, moving from a 10.7% share to 10.3% in the same period.
- Supermarket sales generally have cooled, influenced by factors such as weather and consumer routines.
- Major retail players like Ocado and M&S have shown growth, countering the trend.
Fresh data indicates a shrinking market footprint for major supermarkets Asda and Aldi, raising concerns over their competitive position. Asda’s market share fell from 13.1% last year to 11.8% this year in the 12 weeks leading up to 7 September. This decline is corroborated by Kantar’s findings, which also recorded a 1.2 percentage point drop, describing the pressured environment for Asda.
Aldi faced a similar downturn according to the analysts. Their market share decreased from 10.7% to 10.3% in the corresponding period. These figures reflect a broader cooling trend in supermarket sales. Factors such as changing weather conditions and the adoption of regular shopping routines post the summer holidays are significant contributors to this development, as noted by analysts at NIQ.
While the market experiences a downturn, Ocado stands out with a 15.4% increase in sales over the recent 12 weeks. M&S also performed well, registering a 12.4% rise. In contrast, other retailers, like Morrisons, managed to boost spending per visit through targeted promotional strategies.
Supermarkets, in general, have seen a monthly decline in till sales, dropping from 5.5% to 4% in the four weeks concluding on 7 September. This is largely attributed to the cost-of-living crisis affecting consumer spending habits, as stated by Mike Watkins, NIQ’s head of retailer and business insight. Watkins points out the role of targeted promotions and understanding consumer behaviour as crucial for sales growth, especially as households plan for the festive season.
The data underscores the challenges faced by Asda and Aldi amid a broader downturn in supermarket sales, contrasting with growth at Ocado and M&S.
