A new report from Kantar Worldpanel has revealed that sales growth among Britain’s supermarkets has slowed to its lowest level in two years. Market growth slowed to 5 per cent in the three months leading to February 21st, compared to 5.2 per cent in the previous quarter. Communications director at Kantar Worldpanel, Ed Garner, said the slow in growth could be attributed to the retailers price cuts . With analysts suggesting that supermarket loyalty may be dwindling in light of the economic downturn, Mr Garner commented that the price wars between the supermarkets was a major factor in the decreased growth.
Having lost market share in January, Asda boosted sales in February with an aggressive promotion campaign which saw sales rise by 3.3 per cent in February, compared with 2.1 per cent in the previous month. Despite that growth, Asda’s market share fell from 17.2 per cent to 17 per cent, as Tesco gained a 0.3 per cent market share, up to 30.4 per cent, with a series of price cuts.
Meanwhile, analysts have expressed concerns at Sainsburys performance, believing it could be lagging behind the likes of Asda and Tesco, whose loyalty promotions appear to have worked in recent months. Mr Garner also commented that the market was getting tougher as a result of food inflation.
