Bad News for the Big Four

On the 8th of April 2014, Kantar Worldpanel, the world leader in consumer knowledge and insights, who monitor over 1.3 million consumers, have some bad news for the UK’s top 4 supermarkets.

With market growth at approximately 1.5%, the big four are experiencing problems in comparison to historical standards, with all four experiencing declining sales over the past 12 weeks (starting from 8th April 2014); the lowest level since July 2010. However, it’s not only sales that are down, they’re losing market share as well!
 
Surely if the market is suffering, and the big four are suffering, then it must be the same for all retailers? Unfortunately it’s not. Aldi and Lidl are breaking records! Aldi’s experienced its best every year with 35.3% growth and a massive 4.6% market share. Lidl are also doing very well with good growth and it’s best ever market share, now at 3.4%.

The growth experienced by Aldi could be, in my opinion, because of their fantastic series of TV spots, produced by McCann Manchester, which depict branded products sold in other retailers, pitted against inexpensive brands found at Aldi.

With the big four experiencing what Edward Garner, Director at Kantar Worldpanel called “worrying share declines”, what’s being done?

Well ASDA are fairly safe as they had the most resistant performance. TESCO’s looking to increase their profits by venturing into different markets. Tesco are looking to launch their Food To Go stores that will compete with the likes of Eat, Greggs and Pret a Manger. Reportedly, Sainsbury’s have recently appointed the Marketing Store, arguably the best ideation, promotional and shopper marketing agency around, to join its roster of agencies.

So, ASDA are safe, I’m not sure what Morrisons have planned, TESCO are expanding (nothing new there) and Sainsbury’s are working with the best in the biz. Check back this time next year to see how everything pans out!