Grocery sales decline for first time in 20 years as big four retreat

(MENAFN- ProactiveInvestors) Britain’s grocery sector has recorded its first decline in sales for twenty years as shoppers desert the big four for no-frills rivals.

Statistics from Kantar WorldPanel showed sales dipped by 0.2% in the past quarter the first time fall since data started to be collected in 1994. 

Tesco saw the largest decline at 3.7% but all the major grocery giants are under the cosh according to Kantar’s data.

Morrison’s sales fell by 3.3% Sainsbury’s by 2.5% and Wal-Mart owned Asda 0.2%.

The figures for the no-fills groups Aldi and Lidl were markedly different.

Aldi sales rose by 25.5% Lidl by 10.6% and Waitrose which is squeezing the big four at the top end of the market notched up a 5.6% gain.

While the Big Four dominate still dominate the market with a combined 73% share the two discounters’ share is now up to 8.4% and Waitrose above 5%.

Tesco Sainsbury’s and Morrisons have all launched rejuvenation strategies in the past few months mostly based around lower prices and/or heavy retrenchment. 

Many brokers are gloomy over prospects for the giant chains and expect more retrenchment as they adjust to what Mike Coupe Sainsbury’s recently appointed chief executive described as a structural shift in the sector.

Sainsbury’s (LON:SBRY) shares were up 2p today to 267.7p. Tesco (LON:TSCO) added 0.7p to 193.4p and Morrisons (LON:MRW) gained 1% to 183.2p.