S Group Outperforms in Grocery Sales Despite Economic Struggles: Affordability Strategies Drive Growth

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

Last year, the volume of sales in grocery stores declined for the second consecutive year. Despite this decline, S Group’s market share increased significantly, making it the only trade group to grow. This growth was due to S Group’s strategy of reducing prices, which resonated well with consumers facing weakened purchasing power. In contrast, K Group and Lidl experienced a decrease in market share, with less than four percent growth in grocery sales.

The value of sales increased by six percent to 22.9 billion euros due to rapid inflation, despite the decline in sales volume. S Group’s focus on affordability by reducing prices proved successful, with Xtra products experiencing price reductions throughout the year. The 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 the market trends since 1978, produced in cooperation with trade groups and individual operators.

Last year, the volume of sales in grocery stores declined for the second consecutive year. Despite this decline, S Group’s market share increased significantly, making it the only trade group to grow. This growth was due to S Group’s strategy of reducing prices, which resonated well with consumers facing weakened purchasing power. In contrast, K…

Leave a Reply