• Wed. May 22nd, 2024

S Group Tops Grocery Industry with Price Reductions While K Group and Lidl Struggle

BySamantha Jones

Mar 27, 2024
S Group’s market share increased last year as the sole trading group

Despite a significant decline in grocery store sales for the second consecutive year, there were some bright spots in the industry. The S Group was the only trade group whose market share increased thanks to price reductions that appealed to consumers grappling with reduced purchasing power. According to market research company Nielsen IQ, the S Group’s market share increased by 1.3 percentage points to 48.3 percent, with grocery sales growing by 8.9 percent from the previous year, outpacing the market.

On the other hand, both K Group and Lidl experienced slower sales growth compared to the average value development. K Group’s market share decreased by 0.9 percentage points to 34.3 percent, while Lidl’s market share dropped by 0.2 percentage points to 9.6 percent. The overall sales volume of grocery stores declined by 1.1 percent from the previous year, despite a six percent increase in sales value due to rapid inflation.

S Group’s grocery store manager attributed their success to maintaining an affordable shopping basket strategy by reducing food prices starting from March. In contrast, K Group focused on throw-in offers and low-cost own products while Lidl emphasized affordability by launching a new loyalty program. Online grocery shopping accounted for €626 million in sales, growing by just 6.7 percent compared to last year, albeit still faster than traditional brick-and-mortar stores.

The Nielsen IQ grocery store register data is compiled annually in collaboration with trade groups and operators, providing insights into the performance of the industry since 1978.

Overall, it is clear that retailers need to continue finding innovative ways to keep up with consumer demand and offer affordable options without sacrificing quality or convenience

By Samantha Jones

As a content writer at newsnnk.com, I weave words into captivating stories that inform and engage our readers. With a passion for storytelling and an eye for detail, I strive to deliver high-quality and engaging content that resonates with our audience. From breaking news to thought-provoking features, I am dedicated to providing informative and compelling articles that keep our readers informed and entertained. Join me on this journey as we explore the world through the power of words.

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