Lidl has shown significant growth this quarter, gaining ground as Asda faces challenges.
- Asda’s sales have dropped by 5.6%, resulting in a market share decrease of 1.2 percentage points.
- Lidl benefits from a 9.1% increase in sales, largely due to successful digital voucher schemes.
- Ocado retains its position as the fastest growing grocery retailer for the seventh consecutive month.
- Retailers focus on promotions as consumers remain concerned about grocery expenses.
The latest figures from Kantar highlight a challenging period for Asda, with sales falling by 5.6% over the 12 weeks leading up to 1 September. This decline has led to a 1.2 percentage point drop in its market share, which now stands at 12.6%.
Conversely, Lidl experienced a significant boost in its sales, achieving a 9.1% increase. This growth is attributed to successful digital voucher schemes specifically targeting its bakery items, which have propelled its market share to 8% during the same period.
Ocado continues to lead in growth among grocery retailers, marking its seventh consecutive month in this position. The company’s sales escalated by 12.9%, increasing its market share slightly by 0.2 percentage points to 1.8%.
Despite a fall in grocery price inflation to 1.7%, Kantar’s Fraser McKevitt notes that consumer confidence remains cautious. Many shoppers continue to express concerns about rising grocery prices, with only home energy costs regarded as a more pressing financial concern.
In response, retailers have increasingly turned to promotional deals to attract budget-conscious consumers. The proportion of sales driven by promotions has risen year-on-year for sixteen consecutive months as of August, with more than half of all grocery shopping trips featuring some form of discount.
The grocery market landscape is shifting as retailers adapt to changing consumer behaviours and pressures.
