According to a recent study report by analysts Nielsen for The Grocer magazine, Supermarkets in the UK have lost more than £800m in sales this year due to price wars and fall in value of pound sterling. Many major brands including Carlsberg, Warburtons, Pampers, Princes canned fish and Heinz Classic soups suffered the most fighting against private label counterparts. The major setback was experienced on the fresh meat side, as the grocers have responded to ultra-competitive prices at the discounters with lower prices and cheaper cuts.
Fresh meat sales have fallen by £328m, a 7.3% decrease – more than cigarettes, which fell £211m – with bacon a specific setback, losing £123m in deals on volumes down 5.6%. Beef sales were down £72m, pork lost £62m, sausages £51m and lamb £21m), while poultry sales also fell £49m, despite picking up some of the 4.4% decline in fresh meat volumes.
Another loss of value emptying was new veg. Deals fell £58m in spite of a 2.1% volume increment, with potato deals down £35m, however spinach deals rose £20m. Different staples to be hit included bread, down £87m (6.2%); margarines and spreads, which fell £83m (7.2%); breakfast grains, declining £78m (5.5%), and cheddar, down £70m (2.8%) notwithstanding volumes going up.
Be that as it may, there was additionally uplifting news in the midst of the gore, with clear indications of more advantageous living among the current year’s quickest developing items. Fresh natural product deals at the mults rose £176m, or 4%, with volumes rising 3%, drove by avocados (+£50m), blueberries (+£44m), raspberries (+£38m) and strawberries (+£32m).
The Grocer’s 135-page report analysed 114 categories totalling £105bn in value.