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UPDATE 2-British grocers' sales growth at five-year high on rising food prices
June 27, 2017 / 7:36 AM / a month ago

UPDATE 2-British grocers' sales growth at five-year high on rising food prices

3 Min Read

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    LONDON, June 27 (Reuters) - British supermarkets recorded
their highest sales growth in five years in the latest quarter,
driven by rising food prices, industry data showed on Tuesday.
    Market researcher Kantar Worldpanel said UK supermarket
industry sales rose 5.0 percent in the 12 weeks to June 18.
    The main factor was grocery inflation which rose to 3.2
percent in the period, up from 2.9 percent in last month's data,
although a spate of hot weather and weak sales in the same
period last year also influenced.
    Market leader Tesco recorded its highest sales
growth since 2012, with a rise of 3.5 percent, sending its
shares up by as much as 2.4 percent.
    "Tesco has attracted a further 369,000 shoppers and
increased sales across all channels, rising fastest online and
through its (larger) Extra stores," said Fraser McKevitt, head
of retail and consumer insight at Kantar Worldpanel.
    However, Tesco and its "big four" rivals Sainsbury's
, Asda and Morrisons, all continued to
lose market share to discounters Aldi             and Lidl
          , who recorded sales growth of 18.7 percent and 18.8
percent respectively.
    Kantar Worldpanel said the current rate of inflation equated
to an extra 133 pounds ($169.5) on the average UK household's
annual shopping bill.
    It highlighted the price of butter, up 20 percent
year-on-year, and a 14 percent rise in fresh and tinned fish.
    Separately on Tuesday, a YouGov survey showed Britain's
messy election outcome and a weakening of the housing market
caused a sharp loss of confidence among consumers.
    
    Market share and sales (percent):
                  12 wks to     12 wks to     pct change
                  June 18 2017  June 19 2016  in sales
 Tesco            27.8          28.2          3.5
 Sainsbury's      16.0          16.3          3.1
 Asda             15.1          15.6          2.2
 Morrisons        10.6          10.8          3.7
 Aldi             6.9           6.1           18.7
 Co-Operative     6.1           6.3           2.2
 Waitrose         5.2           5.2           5.3
 Lidl             5.0           4.4           18.8
 Iceland          2.2           2.1           7.4
 Ocado            1.3           1.3           10.7
    Source: Kantar Worldpanel

    ($1 = 0.7849 pounds)

 (Reporting by James Davey; Editing by Paul Sandle and Edmund
Blair)
  

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