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- Asda continued to lag the industry, with sales falling 3.5%, NIQ said
Grocery sales growth slowed over the past month as shoppers limited spending ahead of Black Friday and Christmas, industry data shows.
Market researcher NIQ said supermarket sales rose 4 percent year-on-year in the four weeks to November 2, up from 4.7 percent.
Asda continued to lag the industry, with sales falling by 3.5 per cent and losing market share by 1 percentage point over the year.
Lagging behind: Asda continued to lag the industry, with sales falling by 3.5%.
Last week, Asda chairman Stuart Rose said the grocer had “lost its way” but the business could be fixed.
Echoing this week’s data from Kantar, NIQ said the fastest-growing supermarkets in Britain were online player Ocado and discounter Lidl, with growth over the 12 weeks to 2 November 16 .1 percent and 11.9 percent respectively.
NIQ said Marks & Spencer took third place with growth of 11.4 per cent, while market leader Tesco, with a rise of 4.7 per cent, and number two Sainsbury’s, with a rise of 4, 6 percent, they also gained market share.
Both Tesco and Sainsbury’s have predicted strong Christmas business.
Mike Watkins, NIQ’s UK head of retail and business insight, said: “Shoppers have so far been cautious and are clearly saving on grocery staples to be able to afford treats and treats.”
Sales: NIQ said the fastest-growing grocers in Britain were online player Ocado and discounter Lidl.
He pointed to “a polarized consumer,” with 50 percent of households still feeling pressure on their personal finances.
NIQ said general merchandise sales fell 1.4 percent in value terms, and volume sales fell 5.5 percent.
The boss of Sainsbury’s has warned that changes to national insurance made by the Government in the autumn budget will force prices to rise.
Simon Roberts said Rachel Reeves’ decision to increase NI by 1.2 percentage points to 15 per cent from April will add £140m to the supermarket group’s tax bill next year.
Reeves also reduced the threshold at which companies start paying employers’ NICs from £9,100 to £5,000 a year. It also raised the minimum wage for most adults by 6.7 percent since April.
Roberts also criticized the Government for not doing enough in the Autumn Budget to reduce the business rates burden on retailers and for tax changes affecting farmers.
Marks & Spencer chief executive Stuart Machin said the supermarket chain could not rule out price increases following the autumn budget.
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