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Pin to quick picksMarks & Spencer Share News (MKS)

Share Price Information for Marks & Spencer (MKS)

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Share Price: 277.90
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Change: -0.50 (-0.18%)
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Open: 278.00
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TOP NEWS: Big Four Lose Market Share, Ocado Trades Strongly - Kantar

Tue, 17th Sep 2019 08:52

(Alliance News) - The UK grocery market returned to growth in the 12 weeks to September 8 but consumers are not stockpiling items ahead of Brexit, Kantar said on Tuesday.

Total grocery sales for the 12 week period rose to GBP26.77 billion from GBP26.62 billion in the same period in 2018. The rise was particularly helped by a warm August bank holiday with shoppers spending GBP1.3 billion from Friday to Sunday, marginally more than last year, Kantar said.

The traditional "big four" grocers, Tesco PLC, J Sainsbury PLC, Wm Morrison Supermarkets PLC, and Walmart Inc-owned Asda Stores Ltd all lost market share in the 12 week period, however.

Tesco's sales fell by 1.4% to GBP7.19 billion from GBP7.29 billion, with market share slipping to 26.9% from 27.4%. Sainsbury's sales stayed broadly flat at GBP4.10 billion though its market share fell to 15.3% to 15.4%.

Asda had a 1.0% year-on-year sales fall to GBP4.04 billion from GBP4.08 billion and market share slipped to 15.1% from 15.3%. Meanwhile, Morrison sales were down 2.0% during the period at GBP2.66 billion versus GBP2.72 billion and market share fell to 9.9% from 10.2%.

The strongest sales rise of all grocers was by Ocado which also had a market share increase to 1.4% from 1.2%. The FTSE 100-listed company's sales grew by 13% to GBP365 million from GBP324 million in the 12 week period.

Kantar's Head of Retail & Consumer Insight Fraser McKevitt said: "With one year to go until Ocado starts selling Marks & Spencer Group PLC products alongside its own lines and national brands, sales at Ocado were up by 12.7%. Ice cream, cheese and sparkling wine all experienced growth in excess of 20%."

Ocado, separately on Tuesday, said its revenue and average weekly orders increased in the third quarter. In the 13 weeks to September 1, Ocado's retail revenue grew by 11% year-on-year to GBP386.3 million and average orders per week increased by 12% to 314,000.

Also, delivering sales rises during the 12-week period were major discounters Aldi and Lidl, both recording a rise in market share.

Aldi had a 6.3% sales jump to GBP2.16 billion from GBP2.03 billion, earning an 8.1% share of the market, up year-on-year from 7.6%.

Kantar data showed Lidl's market share rose to 6.0% from 5.5%. Sales at the grocer were up by 9.2% to GBP1.59 billion from GBP1.46 billion.

The Co-operative Group's market share was flat at 6.6%, despite delivering a 1.8% rise in sales to GBP1.78 billion.

Waitrose, which will have its products sold on Ocado's website until September 2020 latest, saw a 1.3% year-on-year sales fall to GBP1.36 billion in the 12 week period, Market share fell slightly to 5.0% from 5.1%.

Also registering a sales fall was Iceland Foods Ltd, by 2.0% to GBP560 million, though its market share remained at 2.1%.

Kantar said that Brexit uncertainty persisted but data showed no evidence that consumers were stockpiling items ahead of the UK's withdrawal.

McKevitt said: "As we move closer to October 31, it seems talk about stockpiling might be just that because we're not seeing any evidence of it at the moment. In fact, households bought 0.9% fewer items during the past 12 weeks than they did last year."

Grocery inflation stood at 1.0% for the 12-week period, Kantar said. Prices rose fastest in markets such as crisps, canned fish and frozen fish, while were down in canned cola, chilled fruit juices and instant coffee.

Tesco shares were up 0.1% early Tuesday, while Morrison shares were down 0.7%. Sainsbury's was up 0.3% and Ocado up by 1.6%.

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Copyright 2023 Alliance News Ltd. All Rights Reserved.

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27 Jun 2023 08:00

Online's share of UK grocery market dips as heat pushes shoppers to stores

Online was 10.4% of total UK grocery market in June

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