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The latest grocery share figures from Kantar Worldpanel for the 12 weeks ending 24 April show all the major supermarkets posting a decline in their rate of growth as supermarket sales increased by only 0.1% on this time last year.
This is a slowdown from the 1.1% reported in April, which was boosted by an early Easter.
Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, explains: “Consumers are enjoying a golden period of cheaper groceries with like-for-like prices falling every month since September 2014. Nearly two years of falling prices mean the average household is spending £78.10 a week in the supermarket, so consumers have annually saved more than £400 than if prices had risen at the same rate as the last decade.
“Yet lower prices are not the result of more groceries being bought on promotion. In fact promotional levels fell in the last year – in the past 12 weeks 38.5% of spend was on promoted goods, a decline from the 39.8% last April. Retailers are aiming for simplicity in their pricing and only a quarter of promotional spend is now through multibuy deals – a 24% drop on last year. This change has been evident across every grocer but most notably in Sainsbury’s, where only 7% of deals are now multibuys. Straight price cut deals tend to offer greater discounts so shoppers will see these as a welcome benefit across the market.”
The overall market volume growth of 1% is in line with Britain’s increased population. Fraser McKevitt continues: “Individual households have stopped increasing the amount of groceries they buy and while it is tempting to correlate lower volumes with the uncertainty surrounding the EU referendum there is no evidence that supermarket purchasing has any significant link with consumer confidence.”
Against the difficult market backdrop the Co-operative’s renaissance continues, growing sales by 3.3% year-on-year. Its market share has risen to 6.2% as refurbished stores and an improvement in range has meant shoppers are visiting more frequently and spending more per trip.
Waitrose also gained market share this period, up by 0.1 percentage points to 5.2% on the back of 1.5% sales growth. It was a different picture for the biggest retailers, as Fraser McKevitt notes: “Sainsbury’s was the best performing, though sales fell back by 0.4% – the first time the retailer has dipped into decline since July last year, though it retained its 16.5% share of the market. This marks the first time that each of the big four has simultaneously witnessed a drop in sales since April 2015.”
Morrisons is still feeling the impact of having less store space than last year – this period sales were down by 2.6%. Sales were also down at Tesco, by 1.3%, and at Asda, which now commands a 16% share of the market thanks to a sales fall of 5.1%.
The discounters have maintained the record share high of 10.4% which they first reached last month. Lidl was the fastest growing with sales up by 15.4% as shopper numbers increased by 648,000. At Aldi sales were up by 12.5% as the discounter added an additional 732,000 shoppers in the last 12 weeks – more than any other retailer.
Grocery inflation now stands at -1.5%* for the 12 week period ending 24 April 2016. This means shoppers are now paying less for a representative basket of groceries than they did in 2015. This is the 21st consecutive period of grocery price deflation. Falling prices reflect the impact of Aldi and Lidl and the market’s competitive response, as well as deflation in some major categories such as fresh and processed pork, butter, and crisps.
*This figure is based on over 75,000 identical products compared year-on-year in the proportions purchased by shoppers and therefore represents the most authoritative figure currently available. It is a ‘pure’ inflation measure in that shopping behaviour is held constant between the two comparison periods – shoppers are likely to achieve a lower personal inflation rate if they trade down or seek out more offers.
Ready meals are sold pre-cooked to a certain extent, and serve as easy alternatives to food prepared at home. They are promoted and presented by vendors as quick and time-saving alternatives, which requires just heating before consumption. These packaged meals are available in frozen, chilled, canned, or dried forms and for single or two servings.
The analysts forecast the global ready meals market to grow at a CAGR of 4.57% during the period 2016-2020.
The report covers the present scenario and the growth prospects of the global ready meals market for 2016-2020. To calculate the market size, the report considered the revenue generated from retail sales of the following ready meals products:
The report, Global Ready Meals Market 2016-2020, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.
Wheyhey Calls for Supermarkets to Take Action Against Sugary Snacks
Wheyhey has recently conducted research into the general publics attitude towards sugar, education and supermarkets.
The survey results concluded that: * 91% agreed that we consume too much sugar in the UK * 87% feel that food manufacturers are not taking an active approach to reduce the amount of sugar in foods * 82% stated that they believe a traffic light rating on food packaging should be a legal requirement for all brands * 34% believe that the traffic light packaging labels are reflective of the contents packet * 79% agreed that there is not enough education on the contents of food including sugars and additives * 52% believe that UK consumers would be more inclined to purchase healthier products if food manufacturers were given more incentives
This study shows that the public has real concerns when it comes to consumption of sugar; there is a desire for sugar-free alternatives and a call for supermarkets and food manufacturers to supply these alternatives.
Established in 2013, the Wheyhey brand currently offers a range of indulgent high protein, sugar free ice creams, designed to provide a truly healthy snacking alternative.
Damien Kennedy, Co-founder of Wheyhey added: “Wheyhey, is growing at an exponential rate. In the UK we will be launching into a supermarket this spring, overseas we have seen success in the Middle East, Germany, Estonia, Finland and Ireland. Innovation is central to our ethos at Wheyhey and as a small business, if we can do it, there are no excuses for bigger businesses not to follow suit."
There are grave concerns both in the UK and globally, echoed through the World Health Organisation (WHO), that we are consuming too much sugar. Type 2 diabetes is up 60 % in the last decade, according to Diabetes UK. Coupled with this, Type 2 diabetes has resulted in 7,000 amputations in the UK at the annual cost of £9bn to the NHS – which is under more and more strain.
Research funded by the UK Department of Health suggests that the reason for the promotion of less healthy options is because unhealthy items are less perishable, however, this is not the case with the rise of innovative food sources.
A study performed by Professor Paul Dobson at the University of East Anglia, found that “special offers” in supermarkets are 20% more likely to have red traffic light levels of sugar compared to non-offers, and that “Buy-one-get-one-free” offers are heavily geared towards unhealthy products as opposed to healthy ones.
According to Wheyhey's sugar survey more than half of respondents believe that UK consumers would be more inclined to purchase healthier alternatives above the leading brands, if more was done to promote them. With the dominance of special offers in supermarkets, research has shown that the promotion of healthier alternatives would lead to an increase in sales of these versus sugary products, which are damaging to health.
Greg Duggan, Co-founder of Wheyhey commented: “The results from our survey reveal that there is a desire among the great British public for change in terms of the promotion of sugars and additives. We need to look at ways to provide better education to the public on topics such as the traffic light packaging and the health effects of long-term sugar intake. British supermarkets and food manufacturers need to take action on the creation and promotion of healthier alternatives.”
More than two-thirds of participants believe that there is not enough education on the contents of foods, and there is a consensus that the traffic light rating system should be a legal requirement, but clarity is required for whether the traffic light label is for the full contents of a packet or for a selected portion.
In a study carried out by Dr Leek, at the University of Birmingham it was found that 40% of respondents failed to identify the healthier product when two traffic light systems – circular and horizontal – were compared, while 25%struggled to pick out the healthiest ready meal when it had the circular label.
Education is crucial to reducing the next generation's obesity levels, with TV chef Jamie Oliver having recently embarked on a campaign to reduce sugar intake in schools. Wheyhey research indicates that there is a hunger to learn more about what goes into our food, which applies to both children and adults.