£532m wiped off supermarket incomes in the last three months

Supermarket sales have slowed to a revenue growth of just 0.2% compared to last year, according to the latest figures from Kantar Worldpanel, covering the 12 weeks ending April 26, 2015.

“Growth in the market has declined thanks to a record low for grocery price deflation, making a typical basket of everyday items 2.1% cheaper now than it was in 2014,” said Kantar Worldpanel’s head of retail and consumer insight, Fraser McKevitt.

“Lower costs are the result of both falling commodity prices and the ongoing supermarket price war, with all major retailers offering cheaper like-for-like goods.”

While this is “good news for consumers”, saving the average household £20 in the last three months, he also pointed out that the lower prices had taken £532 million out of supermarket tills, a fact which has obvious implications for suppliers.

“German discounters Aldi and Lidl continue to be the fastest growing retailers, up by 15.1% and 10.1% respectively,” said Mr McKevitt. “Both are rewarded with new record high market shares: 5.4% for Aldi and 3.8% for Lidl.

“While such growth is the envy of the industry it is slower than in recent months, suggesting the discounter momentum is starting to slow a little.”

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