TOP NEWS: UK Grocery Sector Benefits From Strong Easter Spending

LONDON (Alliance News) - The UK grocery sector growth picked up pace in the 12 weeks to April 21, helped by a GBP2.5 billion Easter spend, and J Sainsbury PLC reclaimed its second position from Asda as the country's second biggest supermarket by market share.

According to the latest Kantar grocery market survey released on Tuesday, German discounter Aldi was again the fastest growing supermarket, a position held since July 2018. Aided by its store-opening programme, Aldi attracted an additional 823,000 shoppers through its doors to grow sales by 11.6% year-on-year and increase its market share by 0.6 percentage point to 7.9% in the 12 weeks to April 21.

Fellow discounter, Lidl's posted 8.6% growth in sales during the 12 week period and increased its market share to a new high of 5.7%, up 0.3 percentage point compared with last year.

Co-op and Ocado were the only other retailers to gain market share on last year, moving up to 6.1% from 6.0% and 1.3% from 1.2%, respectively, Kantar said. Co-op sales increased 4.5% year-on-year, while Ocado Group PLC recorded 6.8% sales growth in the period.

The research agency said overall total year-on-year grocery sales increased by 2.0% during the 12 weeks, bolstered by a record-breaking Easter week spend.

"Shoppers indulged in GBP335 million worth of Easter eggs and seasonal chocolate during the 12 weeks and the average household took home 10 such treats during the longer build up from February to the holiday weekend. The warm weather over the Easter break helped boost sales of ice cream by 8% and hay fever remedies by 27% during the past four weeks as families made the most of the sunshine," said Kantar's Head of Retail & Consumer Insight Fraser McKevitt.

Among the big four retailers, Tesco PLC saw a 1.0% rise in sales; however its market share slipped to 27.3% from 27.6%.

Sainsbury's recorded 1.2% drop in sales and its market share fell to 15.4% from 15.9% in the recent 12 weeks. The retailer, however, reclaimed its position as the UK's second biggest supermarket chain.

"Sainsbury's has reclaimed second position despite a sales decline of 1.2%. The supermarket achieved double-digit growth online which coincides with the launch of its first mobile-only payment store in central London this week, further demonstrating its drive towards digital innovation," said McKevitt.

Walmart Inc-owned Asda increased sales by 0.3% in the period. Its market share fell to 15.2% from 15.5%, relegating it back to third position.

Wm Morrison Supermarkets PLC sales increased 0.6% in the 12 week period, while its market share declined to 10.3% from 10.5%.

Frozen food specialist Iceland Foods' sales were up 1.4%, with the retailer's market share flat at 2.1%.

Lastly, premium supermarket Waitrose, part of the John Lewis Partnership, saw sales rise 0.7% in the 12 week period. Its market share fell to 5.0% from 5.1%.

The research agency said grocery inflation stood at 1.4 for the 12-week period. Prices increased at fastest rate in markets such as cola, lamb and crisps, while falling in instant coffee, fresh sausages and nuts.

Tesco shares were up 0.3% early Tuesday, while Morrisons was up 1.4%. Sainsbury's was marginally lower and Ocado up 0.6%.