Lidl experienced significant growth this quarter, capitalising on increasing sales, while Asda faced a decline in its market position.
- Kantar’s recent analysis revealed a 5.6% drop in Asda’s sales, leading to a reduction in its market share to 12.6%.
- Lidl’s strategic use of digital vouchers boosted sales by 9.1%, elevating its market share to 8%.
- Ocado sustained its record as the fastest growing grocer, with a 12.9% rise in sales, increasing its market share to 1.8%.
- Grocery price inflation decreased to 1.7%, yet consumer financial concerns remained, with significant attention on the upcoming Autumn Budget.
Recent data highlights a tumultuous period for Asda with a 5.6% reduction in sales over twelve weeks leading up to 1 September 2024. This decline has impacted Asda’s market share, decreasing by 1.2 points to 12.6%.
In contrast, Lidl has successfully increased its market share to 8%, driven by a strategic 9.1% rise in sales. This growth is attributed to a targeted campaign using digital vouchers for bakery items, appealing to budget-conscious consumers.
Ocado continues to outperform in the grocery sector, marking the seventh consecutive month as the fastest growing supermarket. Its market share has risen by 0.2 points to 1.8% amid a 12.9% surge in sales during the quarter.
According to Fraser McKevitt from Kantar, despite a decrease in grocery price inflation to 1.7%, consumers remain cautious. Around 60% of shoppers express significant concern over rising grocery costs, second only to worries about home energy bills.
Retailers are amplifying their promotional efforts, as evidenced by the proportion of sales on promotion increasing year-on-year for sixteen months, with more than half of all grocery trips involving deals. This scenario underscores the importance of affordability as households anticipate potential economic shifts with the Chancellor’s forthcoming Autumn Budget.
As Lidl forges ahead amid market shifts, Asda faces challenges requiring strategic reassessment.
