Sainsbury’s growth lags behind major rivals as it lines up Asda merger | Business

Sainsbury’s planned £7.3bn takeover of Asda comes as the London-based grocery store continues to be outgunned by its three major rivals, in response to the newest gross sales figures.

Sainsbury’s gross sales rose by simply zero.2% within the 12 weeks to 22 April, its slowest tempo of growth for greater than a 12 months.

Asda’s gross sales rose by 1.four% within the interval, however the Leeds-based chain and Sainsbury’s each misplaced market share, in response to the newest information from Kantar Worldpanel, whereas Tesco and Morrisons held regular because of their turnaround plans.

“It is very competitive out there for Sainsbury’s,” stated Fraser McKevitt, the pinnacle of retail and client perception at Kantar Worldpanel. “Having had a difficult couple of years, Morrisons is now doing the basics of retail very well and Tesco is not seeing hugely rapid growth but it is consistent. In the light of a zero-sum game for food retail that has put pressure on everybody else.”

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Sales at Tesco rose by greater than 2% for the primary time since 2011, serving to the UK’s greatest grocery store chain retain a 27.6% share of the market in contrast with 15.9% at Sainsbury’s and 15.5% at Asda.

Supermarket sales growth
Supermarket gross sales growth

Morrisons additionally achieved gross sales growth in extra of two%, whereas discounters Aldi and Lidl elevated gross sales by 7.7% and 9.1% respectively as they opened new shops. The general market grew by 2%.

McKevitt stated gross sales growth would now be more durable to search out for all supermarkets as grocery inflation is slowing. Prices rose by 2.1% within the 12-week interval, the slowest tempo since March final 12 months, pushed by will increase in the price of butter, bottled colas and bread, whereas the worth of contemporary poultry and laundry detergent fell.

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