Asda Wins Annual Christmas Sales Race Between UK Retailers
This Christmas, Asda Groceries won the annual race between the UK supermarket chains after the retailer posted a10.7 per cent increase in sales for the four weeks ending December 25th. Asda was helped in large part by its acquisition of Netto UK 18 months ago, according to market research firm Kantar Worldpanel.
According to Kantar, rival Tesco lagged its contemporaries during the build up to Christmas as all of them collectively fought back against the UK’s largest retailers price cutting campaign. In contrast to Asda, Tesco registered a 3.8 per cent increase in sales during the same four week period.
According to Tesco the cut in prices impacted the amount of cash which passed through the retail giant’s tills. Kantar begged to differ, arguing that an aggressive response by rivals undermined Tesco’s market share, which fell from 30.5 per cent last year, to 30.1per cent this year.
Asda increased its market share to 17.2 per cent this year, from 16.8 per cent in the previous year.
In its report Kantar said its research suggests that consumers were buying fewer items, and that aggressive price competition during the quarter ending Christmas day was under the headline inflation rate of 5.9 per cent.
The data came amidst a backdrop of strong demand for season items such as mince pies, turkeys and wine, which lifted like for like sales at retail outlets owned by the Co-operative Group, the fifth largest retailer in the United Kingdom, which posted a 3.1 per cent increase in sales during the four weeks leading up to Christmas day.
The Co-operative Group chief executive Peter Marks, said he was encouraged by the good performance. The retailer expanded its presence in Scotland through the acquisition of convenience store chain David Sands for an undisclosed amount.
The company plans to increase the number of stores in the UK by 300 over the next three years from its current level of 2,800.
Please Note - All Prices Quoted Are Correct at Time of Posting