Recent data from NIQ reveals a decline in market shares for Asda and Aldi amidst cooling supermarket sales.
- Asda’s market share fell to 11.8% from 13.1% over the past year.
- Aldi experienced a slight drop, with its share decreasing from 10.7% to 10.3% in the same period.
- The overall supermarket sales dipped due to weather changes and post-summer adjustments by consumers.
- Experts highlight the need for strategic focus on promotions and consumer behavior to navigate market conditions.
Asda and Aldi, two major players in the retail sector, have encountered a downturn in their market shares according to the latest figures released by NIQ analysts. Asda’s market share has dropped from 13.1% to 11.8% in the 12 weeks leading up to September 7. Similarly, Aldi has faced a reduction in its market position, slipping from 10.7% to 10.3% during the same timeframe. Notably, this decline is consistent with data from Kantar, another analytic firm, which reported a 1.2 percentage point decrease for Asda, placing it at 12.6% for the 12 weeks ending on September 1.
During this period of declining market shares, Ocado emerged as the fastest-growing retailer, boasting a significant 15.4% increase in sales over the last 12 weeks. M&S followed closely with a commendable 12.4% rise in sales. Meanwhile, supermarkets as a whole witnessed a dip in till sales, attributed to the transition from summer to autumn and shifts in consumer routines post the summer break. According to NIQ, total till sales decreased from 5.5% to 4% in the concluding four weeks of September 7.
Lord Rose, who is stepping in to replace Mohsin Issa in managing Asda, has expressed concern over this performance slump, stating that he found it “embarrassing.” The situation underscores the challenges faced by retailers in adapting to changing market dynamics and consumer behavior. Further pressures include households grappling with the cost of living increases, prompting 50% of them to adjust their budgeting strategies. This involves a focused approach to purchasing, with Christmas preparations already influencing consumer spending patterns.
NIQ’s UK head of retailer and business insight, Mike Watkins, emphasized the critical nature of promotional strategies in engaging budget-conscious consumers. He noted the importance of understanding promotional efficacy and media spending impacts, aiming to align offerings with consumer purchasing drivers. Watkins’ insights suggest that retailers need to offer compelling products and promotions to stimulate sales growth, especially as households begin to stock up for upcoming festive periods.
Retailers must adapt swiftly to shifting consumer behaviors and economic pressures to regain market momentum.
