Sainsbury’s Sales Growth Outperformed The Rivals By A Significant Margin

Sainsbury’s Sales Growth Outperformed The Rivals By A Significant Margin

According to a recent report by Kantar, one of the most widely known data insights and consulting company, in 12 weeks to October 6th, 2019, Sainsbury’s has come out as the star performer in the league of supermarkets (big four). The research firm has reported the sales growth for Sainsbury’s to have outperformed the other three supermarket giants namely Tesco, Asda, and Morrisons. Asda and Morrisons are jointly owned by Walmart.

Figures For Sales Growth

As per the data, Sainsbury’s sales have gained 0.6% in the past 12 weeks. The sales were previously down by 0.1% in 12 weeks to September 08th. On the other hand, Tesco’s sales have slightly dropped to 0.2% during the same time period. A much stronger decline of 0.9% has been reported in Asda Stores Limited while Morrisons has taken the lead with a shocking 1.8% decline in sales over the same time period.

The leading four supermarkets, however, have still underperformed when compared to the data for German discounters Lidl, and Aldi. Kantar’s report has further added that sales are up by 8.2% for Lidl while Aldi is quickly chasing with a sales growth of 7.3%. Such positive figures have also improved the market share for German discounters with Aldi currently at 8.1% as compared to 7.6% for the last year, while Lidl has upgraded from 5.6% last year to 6% as of now.

Consequently, market share for Sainsbury’s has faced a minor drop to 15.3% from 15.4% last year. Each of the other three supermarket giants, Tesco, Asda, and Morrisons, have experienced a relatively stronger decline to 27% from 27.3% last year, 15% from 15.3% last year, and 9.9% from 10.3% last year respectively.

The data for the past 12 weeks from Kantar has also highlighted that in terms of overall sales, a growth of 1.3% was observed in the market while the 12 weeks before that had represented a growth of just 0.5% in overall sales.

Insight Into The Sainsbury’s Stock

The head of retail, Mr. Fraser McKevitt of Kantar has appreciated the sales growth in Sainsbury’s and stated that it is the fastest it has ever grown since October of 2018. Following the report, Sainsbury’s share price rallied on Tuesday, October 15th, 2019 to a daily high of 217.70. The stock is currently trading at around 214.00 level.

Sainsbury’s has also made a recent announcement that the availability of replacement brands like J James and family, and Stamford Street can soon be expected to expand. Once the plan is realized, it would be rather interesting for the traders to see how that casts an impact on the overall sales.

By Michael Harris
Specialising in economics by academia, with a passion for financial trading, Michael Harris has been a regular contributor to Invezz. His passion has given him first hand experience of trading, while his writing means he understands the market forces and wider regulation.

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