Supermarket Wars: Major Chains Lose Ground

Written By Unknown on Rabu, 19 Juni 2013 | 00.25

The dominance of the so-called 'big four' supermarket chains has been further eroded amid an intense battle for business.

In its latest report on the sector, market researcher Kantar Wordpanel found that discount retailers Aldi and Lidl and higher-end Waitrose took more custom away from their bigger rivals as consumers hunted bargains amid the continuing squeeze on incomes.

Kantar said Aldi scored another all-time record share of 3.6% in the 12 weeks to June 9, while Lidl and Waitrose both held on to record shares from May of 3% and 4.9% respectively.

Market leader Tesco, number two player Asda and Morrisons all saw their market shares dip though Sainsbury's bucked the trend, raising its share to 16.7% with sales growth of 3.5%.

Kantar analyst Fraser McKevitt said: "The continuing polarisation of the grocery market poses a difficult question for the big four retailers - how to make their offer appealing in an increasingly squeezed market.

"Asda recently announced it is going toe-to-toe with Aldi on the price of fresh food and produce, demonstrating its growing concern with the threat from the discounter," he said.

Earlier this month Tesco reported a first-quarter like-for-like sales fall of 1% while Sainsbury's posted a 0.8% rise. 

Last month Morrisons reported a first quarter decline of 1.8% while Asda posted a 1.3% rise.

The country's biggest chains are investing in their online operations amid a big spend shift to the web among consumers.

Convenience store numbers are also growing while Morrisons confirmed last month it was aiming to catch its main competitors by launching an online food offering with Ocado.


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