Supermarket sales down 0.2%

Overall supermarket sales fell for the first time since 1994, according to new data from analysts.

Retail analysts Kantar Worldpanel reported a 0.2% fall in overall supermarket sales as consumers opt for cheaper foreign discounters, Lidl and Aldi.

The data represents the 12 weeks to the 9 November 2014 and showed Tesco suffered the biggest fall in overall sales with a -3.7% decline compared with last year. This was followed by Morrisons which suffered a -3.3% fall and Sainsbury’s clocking up a -2.5% decrease. Asda only fared slightly better with a -0.2% fall.

In contrast, Aldi and Lidl enjoyed huge spikes in overall sales with +25.5% and +16.8% respectively over the same period.

Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel explained: “The declining grocery market will be of concern to retailers as they gear up for the key Christmas trading season. The fight for a bigger share of sales has ignited a price war, which means an average basket of everyday goods such as milk, bread and vegetables now costs 0.4% less than it did this time last year. This is bad news for retailers, but good news for shoppers, with price deflation forecast to continue well into 2015.”

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