Fresh meat helps Tesco increase sales

Barbecue occasions have driven sales of fresh meat for Tesco, helping the retailer attract over 250,000 additional customers. 

For the 12 weeks ending 21 May 2017, continued inflation has contributed to a united growth for the main supermarkets. According to Kantar Worldpanel, overall sales grew by 3.8% year on year. This is the market’s best performance since September 2013.

“The big four have collectively grown by 1.6% overall, while Aldi and Lidl together grew at their fastest rate since January 2015,” commented Chris Hayward, consumer specialist at Kantar Worldpanel. He said sales increased 19.2% year on year, with the two discounters reaching a record market share of 12%. Sixty-two per cent of the UK’s population shopped at either Aldi or Lidl in the past 12 weeks, compared to 58% for this time last year. That equates to an additional 1.1 million households visiting either of the stores.

Hayward continued: “Consumers are starting to feel the pinch as prices continue to rise, with the average household spending an additional £27 in groceries in the past 12 weeks. That may not seem like much, but if inflation continues at its current rate over the course of a year, that would mean an extra £119 spent on groceries per household.”

He highlighted that all 10 of the grocers have experienced an increase in sales, prompted by higher prices from inflation. Own-labels were considered to be a major source of growth for the retailers, with sales up 6% year on year, while branded products grew just 0.6% during the same period.

“Tesco has increased sales by 1.8% year on year, attracting over 250,000 additional shoppers during the past 12 weeks,” explained Hayward. “Helped by promotions on barbecue foods as the weather gets warmer, sales of fresh meat grew well ahead of the market at 4.3%, compared with 0.9% overall. With support from the Food Love Stories campaign encouraging the Great British public to cook more from scratch, fresh produce also performed particularly well for the retailer.

“Asda has also increased shopper numbers by over 360,000 in the past 12 weeks. In particular, the retailer has taken advantage of own-label’s growing popularity with consumers. Its recently revamped ‘Farm Stores’ line helped increase sales of the grocer’s cheapest private-label tier by over 20% year on year. More than 9.2 million households bought Asda value own-label products during the past 12 weeks – one million more than last year.”

Of the big four retailers, Morrisons once again saw the best performance, while experiencing six consecutive periods of sales growth. “Its premium own-label range, ‘The Best’, has been key to the retailer’s success, with sales up by over a third on last year as nearly 800,000 additional shoppers chose products from the line during the past 12 weeks,” added Hayward. “[The] Co-op’s growth of 1.5% was driven in part by strong premium own-label growth; sales of its ‘Irresistible’ range were up 33.7% year on year. The grocer also enjoyed its 25th consecutive period of overall sales growth, although its market share dipped by 0.2 percentage points.”

Sainsbury’s saw sales increase 1.7%, driven by a strong performance for online and for its Local convenience stores. Waitrose enjoyed a sales increase of 3.3% year on year, although its market share fell to 5.2%.

Growing ahead of the market, Iceland saw sales rise by 8.6% and attracted 380,000 more shoppers, which helped boost its market share by 0.1 percentage points to 2.2%. Meanwhile, Ocado’s sales grew 9.4%.

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