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Asda sales decline 3.5% as discounters, Waitrose and Morrisons see growth

Published:  01 July, 2015

Asda saw the biggest sales decline of the big four supermarkets in the second quarter of the year as the growth of the discounters continued to have an impact.

The chain's sales dropped 3.5% in the 12 weeks to June 21 according to data from Kantar Worldpanel.

Over the same period Aldi and Lidl grew their sales by 15.4% and 9.1% respectively.

The total grocery market fell back by 0.1% and Morrisons was the only one of the big four to see an increase. It's 0.6% rise was its second in a row giving it its first market share gain since December 2011.

Sales fell by 1.3% at both Tesco and Sainsbury's.

Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said: "The return to marginal decline across the grocery market reflects both falling prices and only steady volume growth.

"Sales volumes are up 2% compared to a year ago but are not anticipated to accelerate, even with an improving economy, as demand for groceries has remained broadly steady since before the recession."

Groceries are now 1.7% cheaper compared with a year ago. Prices have been falling since September 2014, but the rate of decline is slowing meaning they are projected to rise again by the end of this year.

Aldi reached a new high with a 5.5% market share of the market while Lidl rose to 3.9%.

Waitrose grew ahead of the market, with sales increasing by 1.2%.