Last year, grocery store sales saw a significant drop for the second year in a row. However, S Group was the only trading group to increase its market share thanks to price cuts that attracted consumers struggling with reduced purchasing power. According to Nielsen IK, S Group’s market share increased by 1.3 percentage points to 48.3 percent, with grocery sales up 8.9 percent year-on-year, outperforming the market.

On the other hand, K Group’s market share decreased by 0.9 percentage points to 34.3 percent, and Lidl’s market share fell by 0.2 percentage points to 9.6 percent. Both trade groups had slower sales growth compared to the average value development despite a six percent increase in sales value due to rapid inflation. Total grocery store sales fell 1.1 percent year-over-year, which is lower than expected growth despite an increase in sales value due to inflationary pressures.

S Group attributed their success to maintaining an affordable shopping basket strategy by cutting food prices starting in March, while K Group focused on offers and cheap own products and Lidl emphasized affordability with the launch of a new loyalty program.

Online grocery shopping achieved impressive sales of €626 million last year, representing a growth of 6.7 percent but slower than the previous year.

Nielsen IK Grocery Store Register data is compiled annually in collaboration with trade groups and operators, providing insight into industry performance since 1978.

In conclusion, despite rapid inflationary pressures on consumers’ purchasing power and slow sales growth compared to average value development, S Group was able to maintain its market share through its affordable shopping basket strategy while K Group and Lidl focused on offers and loyalty programs respectively.

By Samantha Johnson

As a dedicated content writer at newspuk.com, I immerse myself in the art of storytelling through words. With a keen eye for detail and a passion for crafting engaging narratives, I strive to captivate our audience with each piece I create. Whether I'm covering breaking news, delving into feature articles, or exploring thought-provoking editorials, my goal remains constant: to inform, entertain, and inspire through the power of writing. Join me on this journalistic journey as we navigate through the ever-evolving media landscape together.

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