Asda and Aldi have experienced a notable decrease in market shares, as revealed by new data from analysts at NIQ.
- Asda’s market share dropped to 11.8% from 13.1% compared to last year, marking a significant decline.
- Aldi also saw a reduction in its market share, falling from 10.7% to 10.3% during the same period.
- Ocado emerged as the fastest growing retailer with a significant 15.4% increase in sales.
- The overall dip in supermarket sales may be attributed to changing consumer routines post-summer break.
A recent report has highlighted a decline in market shares for major supermarket chains Asda and Aldi, according to analyst NIQ. Asda’s share decreased to 11.8% within the 12 weeks leading up to 7 September, down from 13.1% the previous year. Aldi’s market share also declined from 10.7% to 10.3% in the same timeframe. The data suggests these declines could be part and parcel of broader market trends impacting multiple retailers.
Additional insights from Kantar reveal a similar trend for Asda, noting a decrease of 1.2 percentage points, reducing its market share to 12.6% in the period up to 1 September. The shift in leadership at Asda, with Lord Rose assuming day-to-day operations from Mohsin Issa, might also factor into current performance metrics. Lord Rose had previously expressed concerns about the grocery chain’s performance, describing it as ’embarrassing.’
Amid these changes, other retailers have shown contrasting results. Ocado has firmly positioned itself as the fastest growing retailer by achieving a 15.4% sales increase over the past 12 weeks. Meanwhile, M&S recorded a 12.4% rise in sales, and Morrisons managed to boost spending per visit with enhanced More Card offers. Furthermore, Waitrose attracted increased foot traffic compared to last year.
The overall supermarket sales have cooled, with NIQ identifying a decrease in till sales from 5.5% to 4% in the past month. This slowdown corresponds with cooler weather conditions and a return to regular shopping routines post-summer. As consumers adapt to seasonal changes, supermarkets have begun to adjust their marketing strategies to remain competitive.
Mike Watkins, NIQ’s UK head of retailer and business insight, noted that September marks a shift in consumer behaviour as households readjust after the summer. He emphasized the importance of targeted marketing to engage budget-conscious consumers, particularly as many begin preparing early for the Christmas season by spreading costs over time. Watkins also highlighted the critical role of promotions and media spend in gaining a deeper understanding of shopper behaviour and purchasing drivers.
In summary, while some market leaders see a decline, others continue to thrive, highlighting the dynamic nature of the retail sector.
