On the same day that J Sainsbury plc (LON:SBRY) reported slightly disappointing full-year results, the latest grocery market share figures from Kantar Worldpanel, showed all 10 major food retailers in growth for the first time in three-and-a-half years thanks to an Easter sugar rush.
Kantar’s data, for the 12 weeks ending 23 April 2017, revealed that the overall grocery market has grown by 3.7% – the fastest rate since September 2013 - worth almost £1bn in additional sales to the sector.
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Fraser McKevitt, head of retail and consumer insight at Kantar, said: “ A strong Easter also contributed to the market’s growth this period. In the past 12 weeks. British shoppers splashed out £325mln on Easter eggs with almost three quarters of the population buying at least one.”
He added; “Consumers plumped for more premium confectionery lines this year – the average price paid for an Easter egg rising by 8.6% to £1.65 – while 20 million packs of hot cross buns were bought in the Easter week alone.”
Sainsbury’s sales up most since June 2014
The data revealed that Sainsbury’s sales rose 1.7% in the period, its greatest increase since June 2014, with growth for the UK’s number two grocer coming in all its three channels – its Local convenience stores, larger supermarkets and online.
Market leader Tesco PLC (LON:TSCO) returned to growth with sales up 1.9% having been hit by a late Easter in the previous period, and UK number three Asda – owned by US giant Wal-Mart Inc (NYSE:WMT) - increased its year-on-year sales for the first time since October 2014, gaining 0.8%.
William Morrison Supermarket PLC (LON:MRW) – which issues a trading update tomorrow - was the fastest growing of the ‘Big Four’ food retailers, although a sales rise of 2.2% remained below that of the overall market and its total market share slipped by 0.2 percentage points to 10.4%.
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German discounters Aldi and Lidl were again the strongest performer, with sales up 18.3% and 17.8% respectively, and both achieving new record high market shares of 6.9% and 5.0%,
Frozen food specialist Iceland saw its sales add 9.3%, while upmarket Waitrose’s sales increased by 3.1%, and downmarket Co-op sales rose by 2.6%.