Summer Fails to Save Supermarkets from Slumping Sales
- Grocery sales fell by -0.5% in the last four weeks
- Strong sales during the same period in 2018 impacted growth
- Lidl and Aldi were the only supermarkets to report sales increases
- Tesco, Asda, and Sainsbury’s maintained highest market share but saw declines
Despite the arrival of warm summer weather and sporting events, total grocery sales fell by -0.5% in the last four weeks, according to Nielsen data. This decline was significantly impacted by strong sales during the same period in 2018 when spending on food and drink surged by +4.5%, driven by the hottest June in 20 years and the World Cup. Every major supermarket experienced losses for the 12-week period, with only ‘discount’ supermarkets Lidl and Aldi reporting sales increases of 12.8% and 8.5% respectively. Tesco, Asda, and Sainsbury’s held the highest market share but also saw declines in sales and share. Mike Watkins, Nielsen’s UK head of retailer and business insight, commented that this year’s retailers had to work harder to encourage spending, as evidenced by increased press and TV advertising.
Factuality Level: 8
Factuality Justification: The article provides accurate information about grocery sales trends, including a comparison with previous years and insights from an industry expert. It also includes specific data from Nielsen and mentions the performance of different supermarkets. However, it could provide more context on the overall market situation and potential reasons for the decline in sales beyond weather and events.
Noise Level: 4
Noise Justification: The article provides relevant information about grocery sales trends and market share changes, but it could benefit from more analysis of long-term trends or possibilities, and a deeper exploration of the consequences for consumers and businesses.
Financial Relevance: Yes
Financial Markets Impacted: Grocery stores and supermarkets
Financial Rating Justification: The article discusses changes in grocery sales, which can impact the financial performance of these companies and potentially affect their stock prices.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.
www.retailsector.co.uk