Sainsbury’s loses ground as shoppers switch to its rivals
SAINSBURY’S decision to create a £14 billion grocery behemoth with Asda was today underscored by a lacklustre performance as arch-rivals and German discounters tempted customers away.
Sainsbury’s, Britain’s second-biggest supermarkets chain after Tesco, struggled to stop shoppers switching to rivals, industry data showed.
Sainsbury’s sales were down 0.2% while market share fell 0.4% to 15.6%, according to Kantar figures for the 12 weeks to June 17.
The combined business could have the biggest chunk of the market with more than 30%, said Kantar. Sainsbury’s boss Mike Coupe has argued it will be lower than that as other players such as Boots and Marks & Spencer are not factored in.
In contrast, sales at Asda rose 1.8%, in keeping with supermarkets chalking up two years of continued growth. But Morrisons held on to its crown as the fastest-growing supermarket of the “big four” posting a sales increase of 1.9%.
Lidl’s 10% makes it the only bricksand-mortar grocer with a double-digit sales growth. However, while Lidl is the winner in growth, German rival Aldi edged up to a record high market share of 7.4%.
Giles Hurley, the boss of Aldi in the UK and Ireland, said: “Our increasing market share reflects the trust our customers have in us to deliver a huge variety of great products at the lowest prices in the market, whether that’s quality, fresh British produce or something to help them make the most of a well-deserved, sunny weekend.”
Supermarket sales rose 2.1%, boosted by soaring temperatures and the World Cup.