S Group’s Price Reductions Boost Market Share Amidst Declining Sales Volume in Grocery Stores

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

Last year, the volume of sales in grocery stores declined significantly for the second consecutive year. Despite the decline, S Group’s market share increased last year, becoming the only trade group to grow thanks 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 its grocery sales grew by 8.9 percent, outpacing the overall market growth.

On the other hand, 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 experiencing growth in grocery sales of less than four percent. The decline in consumer purchasing power due to accelerated inflation has been putting pressure on K Group’s market share in recent years.

In contrast with this trend, online grocery shopping experienced modest growth last year, reaching 626 million euros and accounting for less than three percent of grocery sales. 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 implemented a successful strategy of maintaining an affordable shopping basket by reducing prices throughout the year with initiatives such as 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 during this period too.

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