Fresh data reveals that Asda and Aldi lost market share as sales slowed, highlighting a shift in the grocery sector.
- Asda’s market share dropped from 13.1% to 11.8% over a year, while Aldi saw a reduction from 10.7% to 10.3%.
- The market-wide till sales also decreased, influenced by seasonal changes and consumer behaviour.
- Ocado leads growth with a 15.4% increase in sales, while M&S follows closely with a 12.4% rise.
- Retailers face challenges from economic pressures affecting consumer budgeting and spending.
Asda and Aldi have experienced notable reductions in their market shares amidst a broader cooling of supermarket sales, according to recent data from NIQ. Specifically, Asda’s market share has diminished from 13.1% to 11.8% in the year up to 7 September. Meanwhile, Aldi’s share saw a decline, moving from 10.7% to 10.3% in the same period. Such findings align with Kantar’s data, which additionally registered a drop for Asda, marking a decrease by 1.2 percentage points to 12.6% for the 12 weeks leading up to 1 September.
Contributing to Asda’s downturn is a leadership transition, as Lord Rose assumes day-to-day responsibilities from Mohsin Issa, following his expression of being “embarrassed” over the company’s recent performance. This change at the helm is likely a strategic response to counteract the plummeting figures.
Looking at the broader market, Ocado emerges as the fastest growing retailer, with sales increasing by 15.4% over the past 12 weeks. M&S shows a similar trend, with a 12.4% rise in sales. Other players like Morrisons noted an increase in consumer spending per visit through strategic More Card promotions, and Waitrose attracted more shoppers compared to last year, reflecting a varied performance across different retail brands.
The general decline in till sales, reported to have fallen from 5.5% in the previous month to 4% in the four weeks ending 7 September, is attributed to seasonal changes where cooler weather and a return to regular shopper routines post-summer contributed to the slowdown. Such trends suggest a market re-stabilization as consumers adjust post the summer holiday season.
Mike Watkins, head of retailer and business insight at NIQ UK, highlights the significance of retailers wisely investing in marketing to resonate with budget-conscious consumers, particularly as around 50% of households face financial strain from the rising cost of living. Emphasising promotions and keen analysis of media spending are deemed crucial for the retail sector as it seeks to drive growth in the forthcoming quarter.
The recent developments underscore the volatility in the supermarket sector, driven by both economic pressures and changing consumer habits.
