Weather and World Cup boost GB grocery

Date : 24 July 2018

The latest data from Kantar Worldpanel, for the 12 weeks to 15 July 2018, shows that British supermarket sales have grown at their fastest rate this year, with total sales up 3.6%. This is up from the reported growth of 2.1% in the 12 weeks to 17 June 2018.

The sector benefited from continued hot weather, as well as the celebratory mood surrounding the World Cup, of which England reached the semi-finals.

Asda best performing of the big four

Amongst the Big Four, Asda set the pace, with implied sales up 3.7%, its strongest growth in the more than five years. Asda was also the biggest gainer of the group in this latest data, with growth accelerating from 1.8% in the June release. This makes it the best performer among the Big Four for the first time since December 2014. Tesco and Morrisons saw positive growth when compared with last month's figures. Tesco's sales growth was at 2.3%, up from 1.4% in June, whilst Morrisons' stood at 2.9%, up from 1.9% in June. However, Tesco's market share fell by 0.3 percentage points, to 27.6%. Once again, Sainsbury's proved furthest adrift from the market average with 0.8% growth, causing its market share declined by 0.4 percentage points.

Strong discount performance

Aldi and Lidl continue to perform well ahead of the market average, at 10.9% and 9.7% respectively. Both retailers also regained pace, up from the 8.2% and 9.1% seen in the June data. Whilst Lidl has evidently benefited from its sponsorship of the England World Cup team, Aldi was the only retailer to achieve double digit growth in July, over a percentage point ahead of Lidl. Aldi also reached a market share high of 7.5%.

A large boost for the Co-op

The consistently good weather has proven an excellent boost to the Co-op whose focus on convenience stores put it an excellent position to benefit from seasonal impulse expenditure. Implied sales were up 6.4% from the 2.4% reported in the June data, its highest recorded since October 2011. Its market share was also up by 0.2 percentage points, now at 6.4%.

 

12 weeks to 16 July 2017 (% share)

12 weeks to 15 July 2018 (% share)

Sales growth (Y-o-Y %)

Tesco 27.9 27.6 2.3
Sainsbury's 16.0 15.6 0.8
Asda 15.1 15.1 3.7
Morrisons 10.7 10.5 2.9
Aldi 7.0 7.5 10.9
Co-op 6.2 6.4 6.4
Lidl 5.1 5.4 9.7
Waitrose 5.1 5.0 2.8
Iceland 2.1 2.1 4.5
Ocado 1.1 1.2 8.5
Other multiples 1.8 1.8 5.3

Total symbols & independents

2.0 1.8 -8.3

 

Source: Kantar Worldpanel

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