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November 2, 2018

UK Grocery market performance

Earlier this week Kantar Worldpanel released is the latest report on UK Grocery market performance. There were no surprises as the Discounters continue to be a dominant forceMarch 29th: What happens next? with Aldi, Lidl and the Co-Op heading the grocery store pack.

It would appear that the great Sunday roast is the meal of choice for the family as sales grew by 3.2% in this in the last 12 weeks.

Encouraging news is that sales are up by 1.7% across a 5 year period and by 3% for the fourth period in a row across the same 12 week period to October 7.

Aldi increased sales by 15.1% and as Fraser McKevitt states in his report “this is the fastest rate of growth since January 2018”. In the same period, Lidl delivered 5% and the Co-Op delivered 7% 

In the past 12 weeks, Tesco’s delivered 0.9% on a market share of 27.4%. Jack’s did not play a significant part in these numbers as the rollout has been carefully planned to ensure the core Tesco numbers are not affected.

‘Exclusively Tesco’ lines contributed £102 million in that same 12 week period. Disappointingly ASDA and Morrisons only grew by 2.4% with Sainsbury’s achieving a 0.6% with market share 15.4%. In that same period grocery inflation was standing at +2%  

UK Grocery is currently in a very positive phase, however, the question still remains with the growth of the discounters, what percentage of their product lines are sourced from the UK? and how much of the consumer pound is being recycled into the UK economy in the form of tax revenue or supplier cash flow?

As we leave Europe does the UK grocer need to start to capture a higher percentage of the consumer pound for the UK economy?