The changing landscape of the UK grocery market was explored by Ed Garner, communications director for Kantar Worldpanel, as he addressed the 2014 NFU Conference.
Grocery market facts:

  1. Spending on food and drink still accounts for less than 10% of household expenditure, despite the prices rises seen since 2008
  2. Aldi has seen growth of 29% over the past year compared with an average growth in sales of 3% in the total grocery market
  3. Lidl and Waitrose are also outperforming the rest of the market with sales growing 18% and 6% respectively in the past year
  4. Together Waitrose, Aldi and Lidl have increased their share of money taken at the tills by 3.1% in the past three years – but that accounts for over £4bn
  5. Sainsbury is the only one of the big five retailers to show growth over the past three years
  6. All retailers are seeking differentiation – either through the development of own label brands, in-store theatre, provenance and ethical considerations
  7. Premium own label ranges are seeing growth despite the tough economic conditions – Tesco has seen sales of its Finest range grow by 13% in the last quarter, while Sainbury’s Taste the Difference range increased by 11%
  8. Online shopping now accounts for 22% of the market and is forecast to keep growing
  9. Single price discount stores like Poundland, Pound World and Home Bargains have seen a 15% increase in sales in the past year
  10. The organic market was hit by the recession but that is starting to come back and the market is in growth – driven by a rise in sales of products like Yeo Valley and Rachel’s yoghurts

More on this: Read about Britain’s supermarket ombudsman, Christine Tacon