All four of the UK’s largest supermarkets saw sales decline over the last 12 weeks, as the expansion of discounters Aldi and Lidl continued to roil the industry.
Asda was the hardest hit, with sales falling 2.7 per cent through 19 July, researcher Kantar Worldpanel said in its monthly report.
Revenue at Sainsbury's fell just 0.3 per cent, meaning that the London-based company leapfrogged Asda to become the UK’s second-largest grocer. Market-leader Tesco's sales dropped 0.6 per cent.
Aldi and Lidl continue to gain traction in the UK amid increasing acceptance by British shoppers. Their sales increased by 17 per cent and 11 per cent, respectively, in the 12-week period, Kantar Worldpanel said. The flight toward the discounters has led to more than a year of falling grocery prices, as bigger supermarkets have fought to retain customers.
Aldi is attracting new customers through investment in the depth and quality of its product range, Jonathan Neale, Aldi’s joint managing director of buying, said by email. “Savvy consumers are shopping with us because they want quality products without having to pay expensive prices.”
News by Bloomberg, edited by ESM
