Early Christmas present for The Co-op
THE Co-operative is out-performing its bigger rivals in a tough grocery market, the latest figures reveal.
The Manchester-based convenience store operator grew sales by 2% to £1.61bn in the 12 weeks to December 6, and it has increased its marker share from 6.1% 12 months ago to 6.2%.
The latest grocery share figures from Kantar Worldpanel, show total grocery market sales up by only 0.1% compared to last year as retailers battled for sales during the vital pre-Christmas period.
Despite Black Friday seeing a small increase of 4% in sales – compared to the previous Friday – the event itself did little to buoy the market overall, the research firm said.
The latest period sees the lowest growth since June and is the ninth consecutive month where sales have increased by less than 1%.
Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said: “Although slow growth means a distinct lack of seasonal cheer for the market, the news is more positive for consumers looking to save this Christmas. Last year customers spent an average of £71.33 on their big Christmas shop but with falling prices set to continue, shoppers are likely to enjoy a cheaper Christmas this year. All supermarkets are cutting prices, particularly on staples like eggs and butter, with the cost of everyday groceries falling by 1.9% this month.
“Despite the difficult market conditions, Sainsbury’s increased sales by 1.2%, growing across its convenience, supermarket and online businesses and increasing its market share to 16.7%. Consumers continue to be drawn to the retailer’s ‘Taste the Difference’ range, and with sales of champagne and sparkling wine up by a quarter it seems clear that the grocer is successfully tapping into demand for premium goods.”
During the period, trading continued to be tough for Tesco and Asda, with both seeing a fall in sales of 3.4% as consumers drifted away from larger stores towards the discounters.
Morrisons has started to feel the impact of selling 130 of its M Local convenience stores, with revenues down by 2%.
Aldi and Lidl remain at the combined 10% share of the market they achieved last month, growing sales by 15.4% and 17.9% respectively year-on-year.
