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Asda’s meat line generates multi-million pound sales
Published:  25 July, 2017

Retailer Asda’s new ‘Farm Stores’ meat products line has helped to generate sales of over £58 million for the supermarket.

Figures from Kantar Worldpanel, for the 12 weeks ending 16 July 2017, have shown the retailer grew for the fourth consecutive period and attracted 398,000 new shoppers, resulting in an increase in sales of 1% year-on-year.

“Robust market growth this year has been boosted by higher grocery inflation, but consumers will be pleased to hear that price rises are no longer accelerating,” said Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel. “Like-for-like inflation now stands at 3.2%, the same rate of increase as this time last month. One year on from the EU referendum – which had a market impact on the price of imported groceries – hard-pressed shoppers could soon start to feel upward pricing pressures ease.”

Sales on own-label brands across the major retailers increased by 6.7% year-on-year, which now account for a record high of just over 51% in spending. “While private-label’s strong performance is partly down to consumers’ undying love for a bargain, it’s actually the pricier premium own-label lines which are leading the way: up 13.9% compared with this time last year. In contrast, brands are seeing considerably slower growth, up by just 0.9% year-on-year.”

Once again, Lidl was the fastest-growing retailer, increasing its sales by 19.4%. This is its strongest performance since October 2014. Its market share has also risen to a record high of 5.1%. Aldi also experienced solid growth, increasing sales by 17.9%.

Meanwhile, Tesco, Sainsbury’s and Morrisons saw sales rises of 2.3%, 2.2% and 2.1% respectively. McKevitt explained: “Tesco clearly sees its online business as a crucial component of its ongoing recovery, evidenced by its move into nationwide same-day grocery delivery ahead of the competition. It remains to be seen if this investment will pay off – while it has the largest share of online sales, Tesco is still losing market share, down 0.5 percentage points to 27.8% over the past 12 weeks.

“Sainsbury’s benefited similarly from strong online custom, while its smaller local convenience stores contributed to the retailer’s 2.2% sales increase. After leading the move towards fewer multi-buy promotions in 2016, Sainsbury’s is now aiming to further simplify its pricing by reducing price-cut deals. This approach means that only 36% of the grocer’s products are currently sold on promotion, compared to an average of 42% across its big rivals.”

Elsewhere, Morrisons saw sales grow by 2.1% with its ‘The Best’ range helping to increase its premium own-label sales by 13%. Iceland, Waitrose and The Co-op saw sales increase by 5.7%, 2.8% and 0.4% respectively. Online retailer Ocado experienced a growth in sales of 11.7%.