The Aldi and Lidl price war is killing Sainsbury's

GunGettyKaylie Browning of USA blows smoke out the barrel of her gun during the Women’s Trap Final on day eight of the ISSF Shooting World Cup LOCOG Test Event for London 2012 at The Royal Artillery Barracks on April 26, 2012 in London, England.

Sainsbury’s sales fell for the sixth consecutive quarter.

The British supermarket said in its first quarter results report that like-for-like sales, excluding fuel, for the 12 weeks to June 6, fell by 2.1%

In a statement, the grocer’s boss highlighted how Sainsbury’s continues to be hit badly by the price war between Britain’s supermarkets.

“Trading conditions are still being impacted by strong levels of food deflation and a highly competitive pricing backdrop,” Mike Coupe, CEO of Sainsbury’s.

“These pressures, including the effect of our own targeted price investment, have led to a fall in like-for-like sales for the quarter. We outlined in our Strategic Review in November some of the key actions we would be taking to remain competitive in this environment and are encouraged by some of the early trends that we are seeing in our key trading and operational metrics.”

Sainsbury’s, alongside other major British supermarkets, is battling to increase market share and is slashing prices in order to remain competitive.

According to Kantar Worldpanel data released last month, in 2012 Sainsbury’s has just about increased its market share from 16.4% in 2012, to 16.5% in 2015. This may seem impressive considering Britain’s biggest supermarket has lost 2.3% over the same period but have a look at how the German budget grocers are growing super rapidly.

Aldi increased its market share to 5.4% this year, from 2.9% in 2012. Lidl’s market shar rose to 3.9% from 2.8% over the same period.

Kantar world panelKantar WorldpanelUK supermarket market share from 2012 to 2015.

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