September 18, 2018 / 8:41 AM / 7 months ago

UPDATE 1-Hot summer boosts UK grocery sales as sector awaits new Tesco format

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    LONDON, Sept 18 (Reuters) - British grocery sales grew 3.8
percent in the latest 12-week period, boosted by demand for
alcohol, soft drinks and ice cream in a record-breaking hot
summer, as supermarkets brace for a push into the discount
sector by market leader Tesco.
    While the country's four biggest supermarkets benefited from
the warm weather spending spree, they all lost market share to
discounters Aldi             and Lidl, whose sales growth was
13.9 percent and 8.3 percent respectively, industry data showed.
    After a decade of losing market share to the fast-growing
discounters, Britain's no.1 supermarket Tesco will on Wednesday
take the fight directly to them with the opening of its own
discount format, reported to be called "Jack's".
    "As speculation mounts over the launch of Tesco's discount
retailer Jack's, it's worth remembering how quickly rivals Aldi
and Lidl have grown their market share," Kantar Worldpanel head
of retail and consumer insight Fraser McKevitt said. 
    Aldi and Lidl have a combined 13.1 percent market share,
after doubling it over the period 2013-2018. 
    Tesco posted sales growth of 1.9 percent in the 12 weeks
ended Sept. 9, Kantar said, noting that Tesco's cheaper
own-label product lines Eastman's and Creamfields launched
earlier this year, were proving popular. 
   Asda was the best performer of Britain's big four
supermarkets, with sales up 3.1 percent, ahead of Morrisons
, up 3.0 percent.
    Sainsbury's, which has agreed to take over Asda to
become the no.1 player, potentially putting pressure on Tesco,
was the laggard again, with sales up 1.6 percent over the
12-week period.
    Market researcher Kantar Worldpanel said sales growth was
ahead of grocery inflation of 2 percent. It said prices were
rising fastest in markets such as butter, cola and canned fish.

                  12 wks to     12 wks to     pct change
                  Sept 9 2018   Sept 10 2017  in sales
 Tesco            27.4          27.9          1.9
 Sainsbury's      15.4          15.8          1.6
 Asda             15.3          15.4          3.1
 Morrisons        10.2          10.3          3.0
 Aldi             7.6           7.0           13.9
 Co-operative     6.6           6.3           8.5
 Lidl             5.5           5.3           8.3
 Waitrose         5.1           5.3           0.8
 Iceland          2.1           2.1           6.0
 Ocado            1.2           1.1           7.9
 (Reporting by Sarah Young and James Davey, Editing by Paul
Sandle and David Evans)
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