UK Supermarket Sales Score on World Cup Boost; Tesco, Sainsbury's Lose Market Share

By Maryam Cockar

Soccer's World Cup and hot weather boosted U.K. supermarket sales, but Tesco PLC (TSCO.LN) and J Sainsbury PLC (SBRY.LN) both lost market share as they were outplayed by German discounters Aldi (ALD.YY) and Lidl, according to Kantar Worldpanel.

For the 12 weeks to July 15, U.K. supermarket sales increased 3.6% compared with the same period a year earlier, thanks to higher alcohol sales, which Kantar said was helped by England's journey to the semifinals.

"Christmas and Easter aside, the week that the England football team played both Colombia and Sweden saw more spent on alcohol than ever before--a colossal GBP287 million", Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel said.

However, despite the boost from the tournament and warm weather, Tesco's market share declined by 0.3 percentage points to 27.6% with sales growth of 2.3%

Sainsbury's market share fell by 0.4 percentage points to 15.6%, with sales growth of 0.8%.

Lidl's sales in the period increased 9.7% and its market share grew by 0.3 percentage points to 5.4%. Aldi's sales rose 10.9%, to reach a market-share high for the retailer of 7.5%, Kantar said.

Mr. McKevitt said Aldi and Lidl are on the verge of hitting a combined market share of 13% for the first time, although "speculation over new entrants to the discount market could mean new pressures on the two retailers".

Asda Group Ltd.(AGP.YY), whose proposed merger with Sainsbury is being assessed by the U.K. competition regulator, saw its sales increase 3.7%, which Kantar said was its strongest growth in more than five years. Asda's market share held steady at 15.1%.

Waitrose's market share declined by 0.1 percentage point to 5.0%. Meanwhile Ocado Group PLC (OCDO.LN), the recent new entrant into the FTSE 100 index, saw its market share grow by 0.1 percentage point to 1.2%, with sales growth of 8.5%.

Wm. Morrison Supermarkets PLC's (MRW.LN) market share was maintained at 10.5% with sales growth of 2.9%.

Write to Maryam Cockar at [e-mail]

(END) Dow Jones Newswires

July 24, 2018 06:38 ET (10:38 GMT)

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