UK Supermarket Sales Score on World Cup Boost; Tesco, Sainsbury's Lose Market Share
July 24 2018 - 6:53AM
Dow Jones News
By Maryam Cockar
Soccer's World Cup and hot weather boosted U.K. supermarket
sales, but Tesco PLC (TSCO.LN) and J Sainsbury PLC (SBRY.LN) both
lost market share as they were outplayed by German discounters Aldi
(ALD.YY) and Lidl, according to Kantar Worldpanel.
For the 12 weeks to July 15, U.K. supermarket sales increased
3.6% compared with the same period a year earlier, thanks to higher
alcohol sales, which Kantar said was helped by England's journey to
the semifinals.
"Christmas and Easter aside, the week that the England football
team played both Colombia and Sweden saw more spent on alcohol than
ever before--a colossal GBP287 million", Fraser McKevitt, head of
retail and consumer insight at Kantar Worldpanel said.
However, despite the boost from the tournament and warm weather,
Tesco's market share declined by 0.3 percentage points to 27.6%
with sales growth of 2.3%
Sainsbury's market share fell by 0.4 percentage points to 15.6%,
with sales growth of 0.8%.
Lidl's sales in the period increased 9.7% and its market share
grew by 0.3 percentage points to 5.4%. Aldi's sales rose 10.9%, to
reach a market-share high for the retailer of 7.5%, Kantar
said.
Mr. McKevitt said Aldi and Lidl are on the verge of hitting a
combined market share of 13% for the first time, although
"speculation over new entrants to the discount market could mean
new pressures on the two retailers".
Asda Group Ltd.(AGP.YY), whose proposed merger with Sainsbury is
being assessed by the U.K. competition regulator, saw its sales
increase 3.7%, which Kantar said was its strongest growth in more
than five years. Asda's market share held steady at 15.1%.
Waitrose's market share declined by 0.1 percentage point to
5.0%. Meanwhile Ocado Group PLC (OCDO.LN), the recent new entrant
into the FTSE 100 index, saw its market share grow by 0.1
percentage point to 1.2%, with sales growth of 8.5%.
Wm. Morrison Supermarkets PLC's (MRW.LN) market share was
maintained at 10.5% with sales growth of 2.9%.
Write to Maryam Cockar at maryam.cockar@dowjones.com
(END) Dow Jones Newswires
July 24, 2018 06:38 ET (10:38 GMT)
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