Marks & Spencer Group PLC was Britain’s fastest-growing supermarket in the 12 weeks to 4 December, according to market researcher NielsenIQ.
Sales grew 9.1% in the period year-on-year and underlining the revival underway at the venerable retailer
M&S last month upgraded its earnings outlook for the second time this year and beat forecasts with its operating profit surging 31% to £143.7mln.
Nielsen attributed its success to its increased variety of food products coupled with its shift towards lower prices that has helped it gain market share.
“For one in three households good availability, as well as low prices, are the most important factors in deciding where to shop,” said Mike Watkins, NielsenIQ UK head of retailer and business insight.
In the initial UK pandemic lockdowns M&S suffered more than many of its rivals due to its high proportion of inner-city and town centre stores, but with restrictions, its share price has catapulted 68% this year to 229.5p.
The only other two food retailers to experience revenue growth were German-owned undercutters Lidl and Aldi, which recorded growth of 8.3% and 4.6% respectively.
The market leader Tesco saw its sales drop 0.7% but managed to outperform the other three of the big four as Sainsbury’s, Asda, and Morrisons recorded declines of 4.6%, 4.2%, and 5.6% respectively.
Total UK till grocery sales tumbled 2.5% in the four weeks to 4 December, NielsenIQ said, but it must be noted that comparisons were skewed as Britain was in lockdown in this period last year.
“Whilst our data may show that performance at the big four supermarkets is weaker, we must remember that this is against strong comparatives last year when the nation was in lockdown,” said Watkins.
The researcher anticipates British shoppers will spend £6.8bn at supermarkets in the two weeks to 24 December, while the average value of shopping baskets will run 2.6% higher this year as families aim to make Christmas more luxurious to make up for last year’s missed celebration.