Grocery market growth falls to 2.4%

Aldi and Lidl dominated sales growth once again, as overall grocery market growth hit its slowest rate since 2005, new figures show.

Published in the latest grocery share figures from Kantar Worldpanel for the 12 weeks ending 2 February 2014, Aldi experienced 32% year-on-year growth, while Lidl recorded a rise of 17.2%.

Fraser McKevitt, retail analyst at Kantar Worldpanel, said that shoppers using these two discounters for their weekly shop, rather than occasionally, helped each of them achieve double-digit growth.

Together, Aldi and Lidl now account for a 7.3% market share, up 1.3% on 2013.

McKevitt, added that the slip in grocery market growth to 2.4% showed that “brighter economic prospects” were yet to be seen. He noted that the slowest growth since 2005 had made it hard for many of the big retailers to increase sales.

Grocery inflation stands at 2.1%, the lowest level since July 2010, according to Kantar.

Elsewhere, Sainsbury’s saw year-on-year growth of 2.7%, increasing its market share to 17.1% from 17% a year ago.

Waitrose’s market share increased to 4.9% from 4.8% last year, notching up 5.6% year-on-year sales growth.

The Co-operative saw a decrease in market share from 6.2% to 6.1%, while sales growth was up 0.3%.

Meanwhile, Asda’s sales were up 0.5% compared to 2013, but market share slipped to 17.3% from 17.7%. Tesco and Morrisons also lost market share, settling at 29.2% and 11.3% respectively. Overall sales at Tesco were down 0.4% compared to the same period last year.

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