UK's Big Supermarkets Increase Sales but Lose Market Share to Discounters -- Kantar

By Razak Musah Baba Features Dow Jones Newswires

U.K's top four supermarket chains all recorded sales growth but lost market share as shoppers seeking lower prices patronized German retailers Aldi and Lidl, a survey showed Wednesday.

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Aldi's market share rose to 6.9% in the 12 weeks ended June 18, compared with 6.1% a year earlier, while Lidl's share rose to 5.0%, from 4.4% , Kantar Worldpanel said. Kantar monitors the household grocery purchasing habits of 25,000 demographically representative households in the U.K.

Tesco PLC's (TSCO.LN) market share fell to 27.8% in the 12 weeks, from 28.2% for the comparable period. However, sales in the 12 weeks were up 3.5% at 7.40 billion pounds ($9.42 billion).

J Sainsbury PLC's (SBRY.LN) market share in the 12 weeks ended June 18 fell to 16.0%, from 16.3%, while sales rose 3.1% to GBP4.25 billion.

Asda, a subsidiary of Wal-Mart Stores Inc. (WMT), saw its market share fall to 15.1%, from 15.6%, with sales 2.2% higher at GBP4.03 billion. Wm Morrison Supermarkets PLC's (MRW.LN) market share fell to 10.6%, from 10.8%, while sales rose 3.7% to GBP2.83 billion

Up-market retailer Waitrose maintained its market share at 5.2% in the 12 weeks ended June 18 and increased sales 5.3% to GBP1.37 billion, Kantar reported.

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Aldi's sales in the 12 weeks climbed 18.7% to GBP1.84 billion, while Lidl's sales rose 18.8% to GBP1.33 billion.

"The market's robust performance this period is partly down to particularly weak sales growth last year and a continuing increase in like-for-like grocery inflation, which is now running at 3.2%. At this rate, that's an extra GBP133 on the average household's annual shopping bill, or the equivalent of seven additional shopping trips a year," said Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel.

-Write to Razak Musah Baba at razak.baba@wsj.com; Twitter: @Raztweet

(END) Dow Jones Newswires

June 27, 2017 03:59 ET (07:59 GMT)