Recently embattled Sainsbury’s (SBRY) was the only one of the UK's big four supermarket chains to achieve growth during the 12 weeks ending 6 October, despite overall supermarket sales accelerating.
This is the startling finding of market research firm Kantar from its latest supermarket share data.
The figures also revealed year-on-year supermarket sales growth accelerated to 1.3%, up from 0.5% in the preceding 12 week period, as Brexit deadline day approached and the grocery market benefited from price inflation and easier prior year comparatives.
SAINSBURY’S BEGINS TO SHINE
Shares in Sainsbury’s rose 0.5p to 214.3p on welcome news it was the best performing of the big four retailers, the quartet that also includes long-run rival Tesco (TSCO), Asda and Morrisons (MRW), during the 12 week period.
In fact, Sainsbury’s increased sales by 0.6%, the fastest rate achieved since October 2018, making it the only big four retailer to achieve growth.
As Fraser McKevitt, Kantar’s head of retail and consumer insight, explained: ‘The grocer recently announced plans to phase out its value “Basics” line which made it into 12% of shopping baskets during the past 12 weeks, so it will be interesting to see how replacement brands like “Stamford Street” and “J James and family” fare as they become more widely available.’
READ MORE ABOUT THE UK SUPERMARKETS HERE
Whereas last year saw grocery spending lifted by high temperatures, World Cup fever and a Royal Wedding, the big supermarket chains haven’t had much to celebrate this year given tough comparatives and subdued consumer confidence.
McKevitt added: ‘Well-documented concerns about the availability of popular products in the event of a no-deal Brexit have not yet translated into a consistent increase in purchasing. While a quarter of British consumers say they are considering stockpiling (according to research conducted by Kantar), it seems they are waiting to see how the next few weeks play out and we expect if they take any action it will be closer to the deadline if a chaotic trading situation looks increasingly likely.’
Elsewhere, the performances of Tesco, bid up 2.3p to 241.4p, Morrisons, off 0.2p at 203.5p and Asda, all improved versus last month, but their sales are still down year-on-year.
The biggest of the three mainstream London-listed supermarkets, Tesco’s sales declined by 0.2% and its market share reduced to 27% in the latest period. That is actually down from 28.8% at the start of CEO Dave Lewis’ tenure in 2014.
Tesco recently surprised the market with news Lewis will step down next summer to be succeeded by Ken Murphy, currently chief commercial officer and president of global brands at Walgreens Boots Alliance.
Shares in online specialist Ocado (OCDO) ripened up 3.8% to £13.52 as it continued its run as Britain’s fastest-growing supermarket, a position held since May 2019, with growth speeding up to 13.3%.
DISCOUNTERS REMAIN RAMPANT
Worryingly for the big four, German upstarts Aldi and Lidl continue to gorge on market share. ‘The discounters now account for a combined 14% of UK grocery sales which is 0.8% percentage points higher than last year, an increase that’s worth nearly 1bn pounds annually,’ continued McKevitt.
