Worry Xmas at big stores
Tesco and rivals losing to Germans
BY SIMON READ TRADITIONAL supermarkets are losing the race to win Christmas shoppers’ trade.
Grocery giants Tesco, Sainsbury’s and Morrisons have all shed market share during the last three months.
Meanwhile, the Co-operative and German retailers Aldi and Lidl have added more customers.
Tesco’s market share fell to 27.6 per cent compared with 28.2 per cent this time last year, according to researchers Kantar Worldpanel.
Sainsbury’s share slipped from 16.4 per cent to 16 per cent, while Morrisons dipped from 10.6 per cent to 10.5 per cent.
Asda were the only one of the big four to maintain their position with 15 per cent of the UK grocery market.
Aldi’s share climbed from 6.9 per cent to 7.6 per cent. The Co-op went from six per cent to 6.2 per cent, while Lidl shot up from 5.1 per cent to 5.6 per cent. Waitrose also saw their market share shrink, falling from five per cent to 4.9 per cent.
Looking at money brought in, FORMER Sainsbury’s boss Justin King is returning to rivals Marks & Spencer as a non-executive director next month.
He was chief executive of Sainsbury’s for 10 years until 2014 and is credited with reviving the supermarket. Before that, he was head of M&S’s food division.
He also worked at Asda in the 1990s with current M&S chairman Archie Norman. The retailer have the German stores are the clear winners, with Aldi boosting UK sales by 12.2 per cent and Lidl by 11.2 per cent. Sales fell at Tesco and Sainsbury’s, by 0.1 per cent and 0.2 per cent respectively. But Kantar reckons there are signs of a bumper Christmas for grocers after sales of festive favourites jumped as shoppers began stocking up in November for Christmas.
More than one in eight households have already bought a Christmas pudding, while boxed chocolate sales have hit £292million and Brussels sprouts are at £18million. Overall Christmas spending in December could reach record levels.
Fraser McKevitt, of Kantar Worldwide, said: “Because of the way Christmas falls, grocers have an extra trading day this year, meaning overall sales in December – up to and including Christmas Eve – could reach £10billion.”
He said overall UK grocery sales grew two per cent over the 12-week period to December 2, its slowest rate since March 2017. made four new board appointments in the last year as they attempt to turn their fortunes around to become more focused on online sales.
The high street giants plan to close several stores, streamline their corporate office and beef up their digital operations.
M&S chief executive Steve Rowe said Mr King’s “experience, wisdom and insight” would help the chain face its challenges. BUDGET Poundland’s Pep&Co clothing
Asda were the only ones to hold market share