Asda gets overtaken whilst Morrisons continues its comeback

RETAILER Morrisons has improved its performance, whilst the struggles of Yorkshire’s other big supermarket chain, Asda, continued.

The two have had very different trajectories over the course of 2015, according to figures from Kantar Worldpanel.

Even though Morrisons’ sales dropped by a slight 0.1%, they have been lauded as the “best performer” among the Big Four retailers.

Sainsbury’s has edged ahead of Asda despite a fall in sales of 0.3%. Asda now has a market share of 16.4%, which is 0.1% behind Sainsbury’s.

Asda has recently announced that they are investing in a different marketing direction, returning to the “iconic” pocket-tap in their television and online adverts that was first unleashed on the public in 1977.

The supermarket chain is getting a rebrand to keep the UK supermarket in line with its US-based parent Wal-Mart.

Kantar 190715

Graph from Kantar Worldpanel 

Among other retailers, for the 12 weeks to the 19 July, Aldi and Lidl both increased their market shares to 5.6% and 4.0% respectively.

The Co-operative has turned it around and is back in growth after a difficult start to the year, increasing sales by 0.1%.

Tesco’s sales however dropped 0.6%, but the supermarket still retains the biggest market share.

Kantar’s figures show slow growth across the grocery market, with overall sales increasing 0.8% compared to a year ago. Smaller retailers are reaping the rewards with a stronger performance that their larger rivals.

Fraser McKevitt, head of consumer and retail insight at Kantar Worldpanel, said: “The continued slow growth of the overall market can be explained by minimal volume growth and lower like-for-like prices, both as a result of cheaper commodity prices and the fierce competition between supermarkets.

“Comparable groceries are now 1.6% cheaper than a year ago, meaning prices have been falling since September 2014, although they are projected to start rising again by early 2016.”

 

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