• Tue. May 28th, 2024

The sole trading group, S, saw an increase in market share last year.

Byeditor

Mar 27, 2024

Last year, the volume of sales in grocery stores declined significantly for the second consecutive year. The S Group’s market share increased last year, becoming the only trade group to grow, thanks to price reductions that resonated well with consumers facing weakened purchasing power. According to Nielsen IQ’s grocery store register, S Group’s market share increased by 1.3 percentage points to 48.3 percent last year. The group’s grocery sales grew by 8.9 percent, outpacing the overall market growth. Prisma and S-market were the primary drivers of this growth, with sales increasing at a faster rate than the market average.

In contrast, K Group’s market share decreased by 0.9 percentage points to 34.3 percent, while Lidl’s market share decreased by 0.2 percentage points to 9.6 percent. Both trade groups experienced growth in grocery sales of less than four percent. K Group has been facing pressure on its market share in recent years due to accelerated inflation and declining consumer purchasing power.

Overall, the sales volume of grocery stores declined significantly for the second year in a row. Last year, the volume of grocery sales decreased by 1.1 percent, following a 5.2 percent drop the previous year. Despite the decline in sales volume, the value of sales increased by six percent to 22.9 billion euros due to rapid inflation.

S Group’s strategy of maintaining an affordable shopping basket by reducing prices proved successful. The group initiated price reductions in Xtra products early in the year, continuing them throughout the year. The K Group focused on throw-in offers and low-cost own products, while Lidl emphasized affordability and introduced a new loyalty program.

Online grocery shopping experienced modest growth last year, reaching 626 million euros, accounting for less than three percent of grocery sales. Nielsen IQ’s grocery store register, produced in cooperation with trade groups and individual operators since 1978, provides a comprehensive overview of the market trends.

By editor

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