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UK Insights

Warm weather and the ‘Markle Sparkle’ dazzle the UK grocery market

Chris Hayward

Head of UK Business Development

Shoppers 30.05.2018 / 08:00


Kantar
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The latest figures from Kantar Worldpanel reveal strong market growth of 2.7% on last year.

The latest grocery market share figures from Kantar Worldpanel, published today for the 12 weeks to 20 May 2018, show that the recent hot weather combined with the Meghan Markle effect sparked strong market growth – up 2.7% on last year. 

The sun shone on the grocery market over the past month with record-breaking temperatures, a bank holiday weekend and Royal Wedding fever all contributing to a bumper period. The Friday before the day of the wedding and the FA Cup Final experienced a particularly noticeable spike in sales, with grocers clocking in £415 million over the 24 hours. 

The festivities and warm weather encouraged shoppers to fire up the barbeque. Over the past month, sales of burgers and sausages rose by 39% and 12% respectively, while non-alcoholic beer sales jumped by 64%. Meanwhile, over 16.6 million households chose to pick up an ice cream as temperatures soared. The hot weather also saw sensible Brits making a beeline for the sun care section, with sales rocketing by 64% on this time last year.

Morrisons performed particularly well over the past 12 weeks. Its sales growth of 2.9% is ahead of the overall market. Morrisons has now celebrated 19 consecutive periods of sales growth and has held market share at 10.5%. The supermarket succeeded in attracting an additional 311,000 new shoppers through its doors. Morrisons saw its alcohol sales increase by almost 8%, while the relaunch of the grocer’s own-label line ‘Savers’ also contributed to overall performance.

With year-on-year sales growth of 2.8%, Asda is also performing ahead of the grocery market. The retailer continues to prove popular with young families, while an increase in spend per trip – up £0.56 to £26.88 on average – has helped buoy sales. Asda’s e-commerce offering is also proving a winner among shoppers – the grocer’s online channel saw sales rise by 7.6% year-on-year.

Over the past 12 weeks Tesco experienced a sales increase of 2.2% and encouraged an extra 170,000 customers to its stores, despite dropping market share by 0.1 percentage points to 27.7%. Meanwhile, Sainsbury’s first increase in promotional activity in three years helped boost sales by 1.0% year-on-year, though the retailer’s market share fell back by 0.2 percentage points.    

Over the past 12 weeks Lidl was the only bricks and mortar retailer to experience double-digit sales growth – up 10.4%. Branded sales have played a pivotal role for the discounter, accounting for 30% of Lidl’s growth. Aldi also continues to perform well: with sales up 6.7%, its market share grew by 0.3 percentage points from 7.0% to 7.3%.

While the disposal of 300 McColls stores is still impacting headline performance, Co-op has experienced sales growth of 1.5%. Despite experiencing marginal year-on-year sales growth of 0.3%, Waitrose saw its market share fall back by 0.1 percentage points to 5.1%. 

Iceland also dropped market share by 0.1 percentage points, though the retailer saw sales increase by 0.8%. Ocado’s e-commerce offer continues to entice shoppers: the online retailer has attracted an additional 132,000 new households over the past 12 weeks and has seen its year-on-year sales increase by 12.7%.

Source : Kantar Worldpanel

Editor's Notes

Please note: Kantar Worldpanel supermarket share data has been reworked as of March 2018, effective from the release covering the 12 w/e 25 February 2018. This is part of an ongoing process to ensure we maintain the best and most accurate read of the grocery market. The change has had a marginal impact on retailer shares and reported performance; growth trends remain unaffected as historical data has been reworked for consistency. 

For reworked 12 w/e historical data please contact us.

Please note that four week ending or six week ending retailer share data should not be used in media reporting. The 12 week ending data stated in this release covers a longer time period which means it is a superior indicator of retailer performances and trends.

For all publicly-quoted Worldpanel data, users of our research (including media) must ensure that data is sourced to ‘Kantar Worldpanel’.

An update on inflation: Grocery inflation now stands at +2.1%* for the 12 week period ending 20 May 2018. Prices have been rising since the 12 weeks to 1 January 2017, following a period of grocery price deflation which ran for 30 consecutive periods from September 2014 to December 2016. Prices are rising fastest in markets such as butter and canned colas, with inflation expected to fall marginally in the coming periods. 

*This figure is based on over 75,000 identical products compared year-on-year in the proportions purchased by shoppers and therefore represents the most authoritative figure currently available. It is a ‘pure’ inflation measure in that shopping behaviour is held constant between the two comparison periods – shoppers are likely to achieve a lower personal inflation rate if they trade down or seek out more offers.

Retailer growth figures reported by Kantar Worldpanel relate to overall take home sales, and so include the impact of store openings or closures. Like-for-like sales change is not measured or reported. Calculating like-for-like sales requires a detailed knowledge of store openings and extensions which is information held accurately only by individual retailers.

Kantar Worldpanel will only support data that is published in the context we have presented it and our own interpretation of these findings. Our commentary is based upon our own data and information in the public domain. We cannot be held responsible for any other interpretation of these findings.

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