Supermarkets keep cutting prices – all the way the Christmas

All supermarkets are continuing to cut prices, even in the run-up to Christmas, according to the latest retail figures from Kantar Worldpanel.

Assessing the 12 weeks to December 6, 2015, the market analysts report a 1.9% fall in “everyday groceries” within a total market where sales grew by just 0.1%.

“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,” said Kantar Worldpanel’s head of retail and consumer insight, Fraser McKevitt (pictured above).

“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.”

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%, with consumers continuing to be drawn to the retailer’s “Taste the Difference” range.

Things remain tough for Tesco and Asda, with both seeing a fall in sales of 3.4% as consumers drift away from larger stores towards the discounters. Elsewhere, 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.

“While many shoppers may not head to Aldi and Lidl for their entire Christmas shop, more and more are likely to pop in for trimmings ahead of the 25th, and each discounter should hope to attract a healthy 10 million shoppers over the Christmas period,” said Mr McKevitt.

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