Asda, Morrisons, and Aldi Lose Ground as Shoppers Spend on Sport and Sunshine
- Asda and Morrisons lose market share
- Aldi’s market share falters
- Ocado and M&S are fastest growing supermarkets
- Total till sales rise 3.6% in four weeks to 13 July
- Online sales increase 3.8% with FMCG share at 12.9%
- Weather, events, and promotions influence shopper behavior
Asda and Morrisons have experienced a decline in market share, with Aldi’s growth also slowing down during this year’s ‘summer of sport’. According to NIQ Total Till data, Asda’s market share dropped from 13.1% last year to 12% in the 12 weeks to 13 July, while Morrisons fell from 8.5% to 8.4%. Aldi, which overtook Morrisons as the UK’s fourth-largest grocer in 2022, saw its market share decrease to 10.5%, down from 10.9% during the same period last year, with sales falling 1% over the 12-week period. Ocado and M&S maintained their positions as the fastest-growing supermarkets, with sales increasing by 12.9% and 8.6%, respectively. NIQ reported a 3.6% rise in total till sales in the four weeks to 13 July, up from 1.1% in the previous month, driven by the late June heatwave and Euro 2024 football fans. Online sales also grew by 3.8%, with FMCG share reaching 12.9%, up from 12.7% in the same period last year. Mike Watkins, NIQ’s UK head of retailer and business insight, explained that weather, events, and promotions significantly impact shopper spending. He added that while consumer confidence remains subdued compared to previous months, food retail is affected by CPI inflation reaching 2% and increased promotional activity encouraging purchases. As the summer holiday season continues, retailers must keep consumers spending under sunny skies and prepare compelling offers for back-to-school in September.
Factuality Level: 8
Factuality Justification: The article provides accurate and relevant information about the changes in market share of various supermarkets, citing data sources and expert opinions on factors influencing consumer behavior. It also includes a brief explanation of the reasons behind these changes. However, it could be improved by providing more context or background information on the Euro 2024 event mentioned.
Noise Level: 3
Noise Justification: The article provides relevant information about changes in market share and sales for various supermarkets, but it lacks a deep analysis or exploration of underlying factors and long-term trends. It also briefly mentions inflation and promotional activity without diving into their effects on consumers.
Financial Relevance: Yes
Financial Markets Impacted: Supermarkets and discount stores
Financial Rating Justification: The article discusses changes in market share for supermarket chains Asda, Morrisons, and Aldi, as well as the growth of Ocado and M&S. It mentions sales figures and the impact of events like the Euro 2024 on consumer spending, which can affect financial markets through stock prices of these companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in this article.
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