[ad_1]
LONDON (Reuters) – British grocery store sales have dropped 0.5% over the past 12 weeks, marking the industry's first overall decline since June 2016, industry data revealed on Tuesday.
Researcher Kantar said the fall reflected the heatwave of the same period last year, which boosted demand and made comparisons difficult.
He added that sales of the four largest UK supermarket groups declined year-over-year in the 12 weeks to 14 July.
Sales at market leader Tesco declined 2.0%, while sales at Sainsbury's, Asda and Morrisons declined 2.3%, 2.0% and 2.6% respectively.
All four major groups lost market share to German discounters. Aldi's sales increased by 6.7% and Lidl's sales by 7.0%.
"It was a tough 12 weeks for all major grocery stores as growth slowed in all supermarkets except Ocado," said Fraser McKevitt, head of retail and consumer sales at Kantar.
He added that the main factor behind the decline in sales was the lower number of shoppers in the stores.
"Last year, people shopped more often and closer to home, stocking their closets while enjoying the sun and the Men's World Cup. This year, households are making one less trip, which may seem small, but sufficient to tip the declining market, "said Mr. McKevitt.
He also noted that grocery store inflation has declined slightly to establish at 0.9% over the period. This is good news for consumers but makes growth more difficult for retailers.
(Report by James Davey, edited by Kate Holton)
Source link
