Slow growth at big four grocers but Morrisons puts on best performance since January

SLOW growth has impacted on the major big four supermarkets, with sales up 0.1% on last year though the Brexit decision has had “no immediate impact” on the sector.

In its best results since January this year, Morrisons sales fell by -1.8% as it recovers from the store disposals of 2015. Kantar Worldpanel is predicting that the impact of these disposals on Morrisons should lessen in the coming months.

The Bradford-based supermarket’s overall market share fell to 10.7%, its premium own-label lines showed the best premium private-label performance of the big four – an increase of 3.8%.

Earlier this month Morrisons’ share price dropped 6.75% following announcements by Asda parent company Walmart put a focus on putting sales volumes above profits at its UK operations if necessary.

Analysts at Kantar said that newly installed Asda chief executive Sean Clarke saw sales at the grocer fall by 5.6%, with market share declining to 15.5%.

Fraser McKevitt of Kantar said: “Asda is alone among the big four retailers in increasing the proportion of sales made on promotion compared with last year. However, its absolute level of sales sold on a deal remains behind its large competitors, where promotions account for 45.2% of sales.”

An early exit from the Euros brought “a rapid reversal in fortune for beer sales” according to Kantar, and alcohol sales were hindered by poor early summer weather, as were barbecue favourites.

Overall, an average basket was 1.4% cheaper than the same time last year as consumers reap the benefits of the ongoing price wars between the big four and challengers Lidl and Aldi.

 

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