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The Markets
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The Markets
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Retail

Sainsbury's weakest in latest Kantar data but Love Island and hot weather boosts sales

Hot weather boosted drinks sales and hit reality TV show Love Island boosted demand for men’s skincare products

J Sainsbury plc (LON:SBRY) delivered the weakest sales performance among the UK’s largest four supermarkets in the 12 weeks to August 12, according to industry data.

Sainsbury’s, which agreed to buy Asda for £7.3bn in April, posted a sales increase of 1.2% in the 12-week period, Kantar Worldpanel revealed.

That compares to sales growth of 2.6% at Asda, 1.8% at market leader Tesco PLC (LON:TSCO) and 2.7% at WM Morrison Supermarkets PLC (LON:MRW).

Discount grocers Aldi and Lidl achieved sales growth of 12.6% and 8.6%, respectively.

READ: Sainsbury-Asda merger may still get CMA approval despite opposition from MPs, analysts say

Kantar said growth in branded products outstripped own-label lines for the first time since 2015. Branded savoury snacks, ice cream and soft drinks performance particularly well during the hot weather.

“The grocery market experienced strong growth buoyed in particular by the recent heatwave,” said Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel.

“Over July, thirsty Brits spent an additional £67mn on alcoholic drinks, while non-alcoholic beers were cheered on by the sun with sales up 58% compared to this time last year. Soft drinks also increased – up 28%.

McKevitt also said hit reality TV show Love Island led to a 16% jump in sales of men’s skincare products.

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