Lidl grabs big­ger share of sales

The su­per­mar­ket is climb­ing up the leader board as it charts the fastest growth in ni

Belfast Telegraph - Business Telegraph - - Front Page - BY EMMA DEIGHAN

LIDL is the su­per­mar­ket with the fastest grow­ing sales in North­ern Ire­land over the last year, ac­cord­ing to re­search.

Kan­tar World­panel’s North­ern Ire­land Con­sumer Spend data re­vealed that over the 52 weeks to Novem­ber 2, the Ger­man re­tailer’s sales grew by 8.5% and the num­ber of cus­tomers jumped by 9,000 over the same pe­riod.

And while it holds a mar­ket share of 5.8% and is in fourth place, with Tesco’s 35.2% at num­ber one, it is still the best per­former for sales growth of the top four gro­cery re­tail­ers here.

Tesco, which has around 50 stores in the prov­ince, saw its sales in­crease by 1.7%.

This was at a slower rate than the in­crease it has ex­pe­ri­enced over pre­vi­ous pe­ri­ods, although nine out of 10 shop­pers here are go­ing to Tesco.

Mean­while, Asda fell be­hind Sains­bury’s on the leader board. Asda, which has 17 NI stores, saw its sales grow by 0.1%, while Sains­bury’s sales rose by 2.1%. Asda and Sains­bury’s hold 17.1% and 17.4% of the take home gro­cery mar­ket re­spec­tively and have plans to merge their busi­nesses.

Dou­glas Faugh­nan ( right), con­sumer in­sight di­rec­tor at Kan­tar World­panel, said: “Over­all gro­cery sales in North­ern Ire­land in­creased by 1.4% over the 52 weeks to Novem­ber 4, 2018.

“On av­er­age, North­ern Irish shop­pers have spent an ad­di­tional £34.80 through­out the year and this can largely be at­trib­uted to higher prices. “Although Tesco’s growth was slower than in the pre­ced­ing pe­riod, sales are 1.7% higher than this time last year, help­ing the grocer to re­tain an over­all 35.2% share of the mar­ket. “More than nine out of 10 North­ern Irish house­holds shopped at Tesco in the last 12 months. “Sains­bury’s in­creased sales by 2.1%, widen­ing the gap over ri­val Asda. “The su­per­mar­ket at­tracted an ad­di­tional 18,000 shop­pers through its doors and now ac­counts for 17.4% of gro­cery sales in North­ern Ire­land, ahead of Asda’s 17.1%. “For the sec­ond con­sec­u­tive pe­riod, Lidl recorded growth of 8.5% and was the only other re­tailer to in­crease shop­per num­bers. More than 9,000 ad­di­tional cus­tomers vis­ited Lidl over the course of the year, help­ing the re­tailer cap­ture 5.8% of the mar­ket.”

Mean­while, the Com­pe­ti­tion and Mar­kets Author­ity (CMA) is con­tin­u­ing its in­ves­ti­ga­tion of Asda and Sains­bury’s merger plans. This week, let­ters of ob­jec­tion to the merger, which is val­ued at around £12bn, ex­pressed con­cern that the sec­tor would be­come a du­op­oly be­tween Tesco and the newly merged en­tity, if the deal goes ahead.

‘Sup­plier B’ said in a let­ter that “re­gard­less of how the mar­ket is viewed, at the very least the pro­posed merger has the po­ten­tial to cre­ate a du­op­oly be­tween Tesco and the par­ties (Sains­bury’s and Asda).

“This could fa­cil­i­tate col­lu­sion be­tween Tesco and the par­ties, ul­ti­mately harm­ing con­sumers.”

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.