S Group Thrives in Declining Grocery Sales by Focusing on Price Reductions While K Group and Lidl Struggle with Weakened Purchasing Power.

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

In the past year, there was a significant decline in sales volume in grocery stores for the second consecutive year. Despite this, S Group managed to increase its market share, becoming the only trade group to experience growth. This was due to the group’s successful strategy of reducing prices, which 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 its grocery sales grew by 8.9 percent, outpacing the overall market growth.

On the other hand, K Group and Lidl experienced a decline in market share despite growth in grocery sales of less than four percent each. K Group faced pressure on its market share due to accelerated inflation and declining consumer purchasing power. Overall, the value of grocery sales increased by six percent to 22.9 billion euros last year due to rapid inflation, despite a decline in sales volume of 1.1 percent following a 5.2 percent drop the previous year.

S Group’s strategy of maintaining an affordable shopping basket by reducing prices proved successful, as it 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 market trends since 1978.

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