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Pin to quick picksOcado Share News (OCDO)

Share Price Information for Ocado (OCDO)

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Share Price: 355.60
Bid: 357.00
Ask: 357.50
Change: 5.60 (1.60%)
Spread: 0.50 (0.14%)
Open: 352.00
High: 378.90
Low: 350.70
Prev. Close: 350.00
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TOP NEWS: Big Four UK Supermarkets Struggle But Ocado Surges

Tue, 12th Nov 2019 08:44

(Alliance News) - None of the "big four" supermarket chains registered sales growth in 12 weeks to November 3, but FTSE 100 firm Ocado PLC was the fastest growing grocer, Kantar numbers showed on Tuesday.

Total grocery sales in the UK grew by 1.0% during the 12 weeks to GBP26.93 billion from GBP26.67 billion in the same period last year. Grocers are now competing to gain traction during the crucial Christmas trading period, Kantar said.

Kantar noted that the grocery sales increase was lower than the rise seen in the same period last year, due to a "a backdrop of political uncertainty and a persistently wet autumn".

Tesco sales were 0.6% lower in the 12 week period at GBP7.28 billion from GBP7.32 billion a year ago, but its market share fell to 27% from 27.5% last year.

J Sainsbury PLC also saw its market share drop to 15.6% from 15.7% and sales were down 0.2% to GBP4.19 billion from GBP4.20 billion.

WM Morrison Supermarkets PLC saw its sales retreat 1.7% year-on-year to GBP2.70 billion from GBP2.75 billion, with Walmart Inc's Asda registering a 1.2% sales decline to GBP4.03 billion from GBP4.08 billion.

Morrison's share of the market narrowed to 10.0% from 10.3%, with Asda's falling to 15.0% from 15.3%.

Ocado's sales jumped 14% year-on-year, the highest rate of increase by any UK grocer during the 12 week period, to GBP366 million from GBP322 million.

German discount grocery chains Lidl and Aldi continued to gain share in the 12 week period, Kantar said.

Aldi posted a 6.7% sales rise with its market share rising to 8.0% from 7.6%. Lidl meanwhile, recorded an 8.8% sales hike with its market share edging to 5.9% from 5.5%.

Also growing in market share was Co-operative Group, to 6.5% from 6.3%, with sales up 4.4% year-on-year to GBP1.74 billion from GBP1.67 billion.

Iceland Foods Ltd had its share of the market frozen at 2.1%, with the chilled products specialist registering sales growth of 1.6% year-on-year.

Waitrose & Partners suffered a 0.9% sales fall with its share of the market declining to 5.0% from 5.1% in the same period last year.

Looking ahead, Kantar expects a drive for seasonal events and promotional activity to continue with retailers now racing to be the "Christmas number one".

Head of Retail & Consumer Insight Fraser McKevitt said: "The final quarter of the year is associated with holidays and festivities, and retailers are always looking for ways to capitalise on seasonal events to attract shoppers.

"It's never too early to start thinking about Christmas, particularly for grocery retailers. With many supermarkets already unveiling their festive advertising campaigns, the starting gun has been fired on the race to be Christmas number one. It should come as no surprise to see the grocers jostling for position early – with the average household expected to spend more than GBP380 on groceries during December. In total, shoppers will spend nearly GBP11 billion in that month alone, showing how it's a crucial period for retailers."

Kantar noted: "Grocery inflation now stands at 0.8% for the 12 week period ending November 3, 2019. Prices have been rising since the 12 weeks to January 1, 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 fresh sausages, frozen fish and ambient cooking sauces, while falling in fresh poultry, butter and instant coffee."

Early on Tuesday in London, Tesco shares were 1.9% lower, Ocado was 0.5% lower, Morrison's was down 0.5% and Sainsbury's up 0.9%.

By Eric Cunha; ericcunha@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Copyright 2024 Alliance News Ltd. All Rights Reserved.

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