Consumer: Shoppers gain as prices fall

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SHOPPERS are saving £1.66 a week thanks to record low prices in the supermarket – but price cuts have taken £532m out of supermarket tills, according to the latest Kantar Worldpanel data.

A typical shopping basket of everyday items is now 2.1 per cent cheaper than it was in 2014.

Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said: “This is good news for consumers, saving the average household £20 in the last three months.

“But many of the country’s largest grocers have struggled to enjoy substantial growth, with lower prices taking £532m out of supermarket tills.”

An increase in shoppers through the door boosted Sainsbury’s, which was the strongest performer among the big four, despite a 0.2 per cent fall in sales.

Leeds-based Asda was the worst performer, down 2.2 per cent as its market share fell from 17.3 per cent to 16.9 per cent.

Asda is suffering from Tesco’s renaissance under new chief executive Dave Lewis.

“These are tough times,” said Mr McKevitt.

“Tesco has done a little bit better, hitting Asda hard. Sainsbury’s and Tesco are still opening convenience stores so they have extra shoppers in stores. Asda has not got that to call upon.”

He added that Asda is now focusing on cutting prices rather than sticking to a round pound format.

“That’s taking money out of Asda’s tills and we’re not seeing a corresponding rise in to tills. It hasn’t brought shoppers through the door.

“They need to look at convenience – do they want to play?”

German discounters Aldi and Lidl continue to be the fastest growing retailers, up 15.1 per cent and 10.1 per cent.