Brexit result has “no immediate impact” on retailers
Kantar Worldpanel figures for the 12 weeks ending Sunday, 17 July 2016 show that the supermarket sector has experienced slow growth, with sales up by 0.1% compared to last year.
“The EU referendum result has had no immediate impact on the prices retailers are charging or the sales volumes consumers are buying over the past 12 weeks,” commented Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel.
“The nation’s average shopping basket is 1.4% cheaper than a year ago, exactly the same level of deflation as reported last month, and it remains to be seen if the Brexit vote will bring about any price rises this year.”
According to McKevitt, the slow start to the summer has had an impact on seasonal meat products: “Beer and lager were also hindered by poor early summer weather, as were barbecue favourites like sausages, which fell by 6.3%.”
With sales falling by 0.7%, Tesco has experienced its slowest rate of share loss since March 2014, now holding on to 28.3% of the market.
Meanwhile at Sainsbury’s, sales fell by 1.1% taking the market share down by 0.2% to 16.3%. “Sainsbury’s has followed through on its promise to remove multibuy offers from its shelves in favour of everyday low prices and simple price cuts and less than 1% of its sales now require shoppers to pick up more than one item to feel the benefit of the promotion,” explained McKevitt.
Despite Asda recently installing Sean Clarke as chief executive, sales at the retailer still fell by 5.6%, with market share declining to 15.5%. “Asda is alone among the big four retailers in increasing the proportion of sales made on promotion compared with last year,” said McKevitt. “However, its absolute level of sales sold on a deal remains behind its large competitors, where promotions account for 45.2% of sales.”
Although Morrisons saw sales fall 1.8%, this is its best result since January 2016. These figures are reflective of the series of store disposals last year, but the impact this has had on the retailer’s performance should begin to lessen in the next few months. Morrisons’ overall market share fell by 0.2% to 10.7%, but its premium own-label lines did show strong growth of 3.8% - the best premium private-label performance among the big four.
Iceland saw sales grow 2.8% year-on-year with The Co-operative increasing sales by 2.1% while Waitrose grew 1.6%. All three supermarkets gained an increase in market share for the third consecutive period, at 2.1%, 6.4% and 5.1% respectively.
The discounters also continued to see an increase. According to Kantar, this was helped by a 5% increase in the number of shoppers visiting either Lidl or Aldi. Lidl has now reached a new market share high of 4.5% assisted by a sales increase of 12.5%, with Aldi increasing market share to a record 6.2%.
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