Budget-Friendly Shopping Resilient Amidst Declining Grocery Sales: S Group’s Growth in 2019

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

Grocery store sales declined significantly for the second consecutive year in 2019, with only one trade group, S Group, experiencing growth. This was due 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, and their grocery sales grew by 8.9 percent, outpacing the overall market growth of 4.5 percent.

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 due to challenges such as accelerated inflation and declining consumer purchasing power.

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 as they initiated price reductions in Xtra products early in the year and continued them throughout the year. 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 and accounting for less than three percent of grocery sales. Nielsen IQ’s grocery store register provides a comprehensive overview of the market trends since its production in cooperation with trade groups and individual operators since 1978.

Overall, it seems that pricing strategies have been key in attracting customers during these challenging times for the grocery industry while online shopping continues to grow at a slower rate compared to other retail sectors such as e-commerce or brick-and-mortar retailers like Amazon or Walmart.

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