Aldi and Lidl Outshine Asda and Tesco
- Supermarket growth remained flat for the 12 week period to 11 August
- Aldi, Lidl and Iceland reported an increase in sales
- Asda and Tesco saw a drop in sales by 1.5% and 1.6% respectively
- Ocado claimed the top spot as the UK’s fastest growing grocer with a 12.6% increase in sales
- Poor weather and low price rises affected growth
- Sales of summer staples like hayfever remedies, suncare and burgers increased by 17%, 8% and 5% respectively
Supermarket growth remained flat for the 12 week period to 11 August, with all chains barring discount brands Aldi, Lidl and Iceland reporting a drop in sales. Sales at Asda and Tesco who maintain the largest share of the market, shrunk by 1.5% and 1.6% respectively for the period, according to data from Kantar Worldpanel. Discount retailers Aldi and Lidl continued to record growth, with sales increasing by 6.2% and 7.7% respectively. Nearly half of all households shopped in an Aldi during the past 12 weeks. Ocado claimed the top spot as the UK’s fastest growing grocer, increasing sales by 12.6%, now taking a 1.4% share of the market. Fraser McKevitt, head of retail and consumer insight at Kantar said, ‘The memory of last year still looms large for retailers and this summer’s comparatively poor weather, combined with low levels of like-for-like price rises, have made growth hard to find for retailers. “July’s hottest day on record wasn’t enough to shift the market into growth, but the grocers will have been encouraged by glimpses of better weather during the past four weeks which helped boost sales of summer staples like hayfever remedies, suncare and burgers by 17%, 8% and 5% respectively.’
Factuality Level: 9
Factuality Justification: The article provides accurate information about the supermarket growth, sales figures for different chains, and market shares. It also includes relevant quotes from a source within the industry. The only potential issue is the mention of ‘July’s hottest day on record’, which may not be universally agreed upon as factual, but does not significantly impact the overall accuracy of the article.
Noise Level: 6
Noise Justification: The article provides relevant information about supermarket sales growth and market share changes, but it could benefit from more in-depth analysis of the factors contributing to these trends and potential long-term implications.
Financial Relevance: Yes
Financial Markets Impacted: UK supermarket chains and discount retailers
Financial Rating Justification: The article discusses sales growth and decline of various UK supermarket chains, which can impact their financial performance and the overall market.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.
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