Weekly Retail & Leisure News - 26 September, 2016
sales inched up 0.3% in the 12 weeks to September 11, according to Kantar
Worldpanel data, driven by more frequent shopping trips which benefit
supermarkets with small store formats. Sales were also boosted by the warm
weather and the national celebrations following the UK’s success in the
Olympics and Paralympics. Sales at Iceland rose 6.3%, Co-op sales rose 3.1%,
while Waitrose sales increased 3.4%, resulting in a record high market share of
5.3%. Grocery inflation dropped 1.1% in the period, the 26th consecutive
period of price deflation, according to Kantar.
But despite overall growth in the sector, the fierce supermarket price war
continues. Aldi reported record sales in the UK and Ireland in the year to
December 31, with 12% total sales growth YoY to £7.7bn, as it continues to win
market share, which is currently standing at 6.2%. However, profits were hit
and fell 1.8% to £255.6m, as the company continues to invest heavily in prices.
Aldi plans to open 70 new stores in the UK next year as part of plans to
increase the number of its outlets from 659 to 1,000 by 2022.
In other news, sales and profits jumped at Inditex in the first six months to
July 31. The retailer reported net profits of £1.1bn, up 8% on the same period
last year. Sales jumped 11%, from €9.4bn to €10.5bn. Inditex emphasised the
importance of the firm’s investment in technology, as it expanded its online
stores to 11 new countries in the period, as well as launched mobile phone
payment in all of its Spanish stores. Chairman and chief executive Pablo Isla
commented: "Both our online and bricks-and-mortar stores are seamlessly
connected, driven by platforms such as mobile payment, and other technological
initiatives that we will continue to develop."
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Director, Head of Retail Research (UK & EMEA)
+44 (0)20 3147 1155
Director, Head of UK Retail & Leisure
+44 (0)20 7318 7838
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