Supermarket sales growth slows as troubled Asda lags peers

Grocery sales growth slowed over the last month as shoppers held back spending ahead of Black Friday and Christmas, industry data shows.

Market researcher NIQ said supermarket sales increased by 4 per cent in the four weeks to 2 November year-on-year, down from 4.7 per cent 

Asda remained the industry laggard, with sales down 3.5 per cent and a 1 percentage point loss of market share over the year.

Last week, Asda chairman Stuart Rose said the grocer had ‘lost the plot’ but the business was fixable.

Echoing data this week from Kantar, NIQ said Britain’s fastest growing grocers were online player Ocado and discounter Lidl, with growth over the 12 weeks to 2 November of 16.1 per cent and 11.9 per cent respectively.

NIQ said Marks & Spencer took third place with growth of 11.4 per cent, while market leader Tesco, up 4.7 per cent, and number two Sainsbury’s, up 4.6 per cent, also gained market share.

Both Tesco and Sainsbury’s have forecast strong Christmas business.

Mike Watkins, NIQ’s UK head of retailer and business insight, said: ‘Shoppers so far have been cautious and it’s evident that they are saving on grocery essentials to be able to afford treats and indulgences.’

Sales: NIQ said Britain’s fastest growing grocers were online player Ocado and discounter Lidl

He flagged ‘a polarised consumer’, with 50 per cent of households continuing to feel pressure on personal finances.

NIQ said sales of general merchandise fell 1.4 per cent in value terms, with volume sales down 5.5 per cent.

The boss of Sainsbury’s has warned that changes to national insurance made by the Government in the Autumn Budget will force prices to rise.

Simon Roberts said Rachel Reeves decision to hike NI by 1.2 percentage points to 15 per cent from April will add £140million to the supermarket group’s tax bill next year.

Reeves also lowered the threshold for when firms start paying employer NICs from £9,100 to £5,000 a year. She also increased the minimum wage for most adults by 6.7 per cent from April.

Roberts was also critical of the Government for not doing enough in the Autumn Budget to reduce retailers’ business rates burden and for tax changes impacting farmers.

Marks & Spencer chief executive Stuart Machin said the supermarket chain could not rule out price rises following the Autumn Budget. 

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