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UPDATE 1-UK discount food retailers' growth accelerates as prices rise
May 31, 2017 / 8:33 AM / 4 months ago

UPDATE 1-UK discount food retailers' growth accelerates as prices rise

 (Adds detail, table)
    LONDON, May 31 (Reuters) - British sales at discount food
retailers Aldi             and Lidl            rose at their
fastest rate since January 2015 and gained market share, while
prices continued to rise, industry data showed on Wednesday.
    Market researcher Kantar Worldpanel said Aldi's sales rose
19.8 percent in the 12 weeks to May 21 year-on-year, while
Lidl's increased 18.3 percent, giving a joint record combined
market share of 12 percent.
    Grocery price inflation was recorded at 2.9 percent
year-on-year, up from 2.6 percent in the previous period.

    It said some higher prices such as for butter, fish and cola
were partially offset by falling prices in other categories
including cooking sauces and cooked poultry.
    Kantar Worldpanel said 62 percent of the UK population
shopped in an Aldi or Lidl during the 12-week period compared
with 58 percent this time last year – an additional 1.1 million
households.
    “Consumers are starting to feel the pinch as prices continue
to rise, with the average household spending an additional 27
pounds ($34.59) on groceries during the past 12 weeks," said
Chris Hayward, consumer specialist at Kantar Worldpanel.
    Overall sales in the market increased by 3.8 percent, the
biggest rise since September 2013.
    All 10 grocers saw a sales rise, boosted by the inflation.
    Market leader Tesco's sales growth was 1.8 percent,
Sainsbury's was 1.7 percent, Asda's was 0.9
percent and Morrisons' was 1.9 percent.
    However, all the big four saw their market shares edge
lower.
    Separately on Wednesday two surveys showed British consumer
confidence edged up to a four-month high in May but households
remained downbeat about the economic outlook, with inflation
since last year's Brexit vote feeding into higher prices in
stores.
    
  Market shares and sales growth (percent):
                  12 wks to     12 wks to     pct change
                  May 21 2017   May 22 2016   in sales
                                              
 Tesco            27.8          28.3          1.8
 Sainsbury's      15.9          16.2          1.7
 Asda             15.4          15.8          0.9
 Morrisons        10.5          10.7          1.9
 Aldi             7.0           6.0           19.8
 Co-Operative     6.0           6.2           1.5
 Waitrose         5.2           5.3           3.3
 Lidl             5.0           4.4           18.3
 Iceland          2.2           2.1           8.6
 Ocado            1.3           1.3           9.4
 Source: Kantar Worldpanel
($1 = 0.7806 pounds)

 (Reporting by James Davey; Editing by Greg Mahlich)
  

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