Supermarket Wars: Price Falls Hit New Record

Written By Unknown on Rabu, 11 Maret 2015 | 00.25

The intense price war between supermarket chains means grocery costs are falling at a record pace, according to industry figures.

The latest data from Kantar Worldpanel, for the 12 weeks to 1 March, showed annual price falls reached a new low of -1.6% in the period.

Its report cited a combination of lower general inflation and price battles, and calculated that shoppers had saved a combined £400m over the 12 weeks.

Inflation has fallen largely as a result of weaker oil costs, although the battle for market share among top supermarkets has also contributed.

The Kantar statistics provided further cheer for Britain's biggest supermarket chain as it moves to improve its offering to shoppers and image in the wake of its accounting scandal.

They showed Tesco recorded its strongest sales performance in 18 months, rising 1.1% during the 12-week period as chief executive Dave Lewis's turnaround plan continued to make an impact.

Its 'big four' rivals, Asda, Sainsbury's and Morrisons, recorded sales falls of 2.1%, 0.5% and 0.4% respectively as they continue to battle for business amid the challenge from discounters Aldi and Lidl, and Waitrose at the top end.

Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said: "All of the major supermarkets are cutting prices to win shoppers, especially within everyday staples such as eggs, vegetables and milk.

"Retailers are focusing their efforts on simple price cuts rather than complicated 'multibuy' deals.

"Among the big four supermarkets Tesco has been the standout retailer ... increasing sales have helped Tesco arrest its falling market share, which is down just 0.1 percentage point compared with last year.

"This resurgence has impacted Asda which competes for many of the same shoppers as Tesco.

"Asda's sales are down by 2.1%, taking its market share to 17.0%.

"Morrisons and Sainsbury's both grew behind the market average, with sales falling by 0.4% and 0.5% respectively."

Both Morrisons and Waitrose are due to release their annual results on Thursday and are expected to confirm falling profits.


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