Retail dynamics are shifting with notable changes in market share.
- Lidl observed a 9.1% growth in sales, bolstering its market share to 8%.
- Asda witnessed a 5.6% decline in sales, reducing its market share to 12.6%.
- Ocado continues its streak as the fastest-growing grocer with a 12.9% sales increase.
- Grocery price inflation has fallen, but consumer confidence remains low.
Lidl’s significant growth in sales, recorded at 9.1%, has been instrumental in enhancing its market share to 8% during the latest quarter. This increase is attributed to effective digital voucher promotions for bakery items, which appealed to cost-conscious consumers.
Conversely, Asda’s market performance has declined, with a 5.6% drop in sales, impacting its market share, which fell by 1.2 percentage points to 12.6%. This indicates a substantial shift in consumer preferences, possibly influenced by competitive pricing and promotional engagement from other brands.
Ocado has maintained its position as the fastest-growing grocer for seven months in a row, achieving a 12.9% sales increase. This has elevated its market share by 0.2 percentage points to 1.8%, reflecting its robust business strategy and appeal to online grocery shoppers.
Despite a reduction in grocery price inflation to 1.7% over the last month, shopper confidence has not improved substantially. According to Fraser McKevitt of Kantar, nearly 60% of consumers remain deeply concerned about rising grocery prices, prioritising them just below home energy costs.
Retailers have increased promotional sales year-on-year, evident in more than half of grocery trips involving some type of deal. This trend points to an ongoing struggle among consumers to manage their grocery budgets despite a fall in inflation.
These developments highlight a dynamic grocery market where consumer preferences and retailer strategies are constantly evolving.
