The UK’s largest supermarkets continued to lose ground to German discounters Aldi and Lidl in the 12 weeks to November 4 with J Sainsbury PLC (LON:SBRY) the worst performer, according to industry data.
Kantar Worldpanel said Sainsbury’s sales fell by 0.6% in the 12-week period, marking the first decline since June, while its share of the market fell 0.5 percentage points (pts) to 15.8%.
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Walmart Inc’s (NYSE:WMT) Asda, which has agreed to be taken over by Sainsbury’s, posted a 2.6% rise in sales and market share remained unchanged at 15.3%.
Market leader Tesco PLC (LON:TSCO) saw sales increase 0.4% but market share dipped 0.6 pts to 27.5%.
Sales at WM Morrison Supermarkets PLC (LON:MRW) edged up 1.5% but its market share fell 0.1 pts to 10.3%.
Aldi and Lidl continued to take market share from the so-called ‘Big Four’ supermarkets.
Aldi sales jumped 15.5% - the fastest pace of growth since January – lifting its market share by 0.9 pts to 7.6%. Lidl sales gained 10.2% and its market share increased by 0.4 pts to 5.5%.
“Five years ago, just under half of British households were visiting one of the discount retailers at least once in a 12 week period,” Kantar said.
“This now stands at almost two-thirds, which is reflected in their continued growth.”
In response to the tough competition from Aldi and Lidl, the Big Four have been taking steps to cut costs and reduce their reliance on grocery sales.
READ: Morrisons, Tesco, Sainsbury's and Asda change tactics as Aldi and Lidl disrupt market
Tesco has bought wholesaler Booker Group and agreed a strategic alliance with French supermarket Carrefour while Sainsbury’s and Asda have proposed a merger.
Morrison’s has expanded its wholesale supply business, which has deals with Amazon.com Inc (NASDAQ:AMZN) and McColl’s Retail Group (LON:MCLS).