Asda see profits slide

30 June 2015

ASDA-logo The supermarket wars (millions dead) have been widely publicised, and most eyes have been on Aldi, Lidl, Tesco and Morrisons. However, flying under the radar for the most part have been Asda.

While we've all been looking at Aldi and Lidl's growth, and how it has chipped away at Tesco, one of the retailers that has been faring most badly is Asda, with their market share on a drastic slide. The supermarket's sales slid 3.5% in the 12 weeks to 21 June.

They're not alone of course - Tesco and Sainsbury's saw their sales falling by 1.3%.

Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, had this to say: "The two discounters increased their sales by 15.4% and 9.1% respectively. Aldi reached a new high with a 5.5% share of the market while Lidl, also showing continued growth, rose to 3.9%."

"Waitrose also grew ahead of the market, with sales increasing by 1.2%, moving to a 5.1% share."

As previously reported numerous times, the cheaper end of the market is faring well, as is the more middle-class end of the sector. Asda reported their first full-year decline in underlying sales in February, and things don't appear to be correcting themselves.

And it looks like the supermarkets that are treating their suppliers the best, are the ones who are performing the strongest on the high street. Consumers are still shopping, but can the big guns turn everyone back into their aisles?

TOPICS:   High Street News   Supermarket

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