A WEE DRAM
CHRIS GILMOUR: SA supermarkets can’t compete with UK and German chains
South Africans are unlikely to ever enjoy the benefits of ultra-cheap shopping as offered by the likes of Aldi and Lidl, for a few reasons
Although there are mixed signals emerging from the UK economic performance, retail sales are holding up well, if the findings of the Kantar World panel are anything to go by. In its recently released analysis of fourth quarter supermarket trading (including the Christmas period), total supermarket sales rose by 3.8% compared with the same period in 2016. With UK inflation averaging about 2.5%, this means that real growth is apparent in the food and grocery aisles. December 22 saw sales of £747m, putting it firmly in the history books as the busiest shopping day ever. However, this broad figure masks some very important differences within the supermarket sector. Among the large established chains, Tesco was the clear winner, increasing its sales by 3% and leaving its main rivals — being Asda, Morrisons and Sainsbury’s — well behind, all on about 2% growth. While Tesco will draw some satisfaction on easily beating its rivals, German discounters Aldi and Lidl make its growth look puny....
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.