Co-op food defies tough grocery market

THE Co-operative Food business has out-performed the grocery market for the first time in four years.

Figures from Kantar Worldpanel showed that in a declining market (total sales were down 0.1% in the 12 weeks to June 21) sales were flat at the Co-op – which has been slashing fruit and veg prices to gain market share in recent weeks.

Elsewhere there was good news for Iceland as its sales increased, while Mancunian David Potts’ impressive start as chief executive of Morrisons continued as it reported a 0.6% increase in the period, making it the best performer of any of the big for supermarkets.

Prices have been falling since September 2014, and groceries are 1.7% cheaper compared with a year ago, but Kantar said that they were projected to rise again by the end of the year.

Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said: “The Co-operative sales were flat, but were crucially ahead of the market for the first time in nearly four years. Helped in part by more shoppers visiting the stores, the retailer’s market share held steady at 6.2%.”

German discounters Aldi and Lidl showed no signs of slowing down and are continuing to win market share from rivals. Aldi’s sales rose 15.4% and Lidl 9.1%