Sainsbury’s (LON:SBRY) has re-gained the mantle of the UK’s second-largest supermarket after Asda’s sales dived in a tough quarter, according to market researcher Kantar Worldpanel.
The FTSE 100 member’s market share of 16.5% edged ahead of ahead of Walmart subsidiary Asda’s 16.4%.
But lower prices meant sales growth across the big four chains was sluggish.
Asda was especially hard hit and saw sales drop 2.7% compared to the same period in 2014, while Tesco (LON:TSCO), Sainsbury’s (LON:SBRY) and Morrisons (LON:MRW) all saw revenues fall.
Fraser McKevitt, head of consumer and retail insight at Kantar said: “Sainsbury’s has returned to its position as the nation’s second largest supermarket for the first time since January, boosted by non-food sales, its Sainsbury’s Local outlets and faster market growth in the south of the country.”
However, the British grocery market showed slow growth in the twelve weeks to 19 July.
Total sales increased just 0.8% compared to a year ago, due to an uptick in competition driving prices lower.
Over the period, shoppers paid 1.6% less for a representative basket of groceries than they did in 2014.
McKevitt said: “Falling prices reflect the impact of Aldi and Lidl and the market’s competitive response, as well as deflation in some major categories including eggs, butter and bread” Kantar said.
Help may not be far away, however, as Mckevitt reckons that prices are “projected to start rising again by early 2016.”
Meanwhile, discounters Aldi and Lidl continue to surge with revenues rising 16.6% and 11.3% respectively and both hit new market share highs.