S Group Thrives in Grocery Market with Affordable Pricing Strategy, While K Group and Lidl Face Decline

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

The sales volume in grocery stores declined for the second consecutive year, with S Group being the only trade group to grow. This was due to their strategy of price reductions that resonated with consumers facing weakened purchasing power. Nielsen IQ’s grocery store register showed that S Group’s market share increased by 1.3 percentage points to 48.3 percent last year, and their grocery sales grew by 8.9 percent, outpacing the overall market growth.

On the other hand, K Group and Lidl experienced a decrease in their market share and growth in grocery sales of less than four percent each. K Group has been under pressure due to accelerated inflation and declining consumer purchasing power. Despite this decline in sales volume, the value of sales increased by six percent to 22.9 billion euros due to rapid inflation.

S Group’s strategy of maintaining an affordable shopping basket by reducing prices proved successful, as they initiated price reductions in Xtra products early in the year and continued them 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.

In contrast, online grocery shopping experienced modest growth last year, reaching 626 million euros, accounting for less than three percent of grocery sales. Nielsen IQ’s grocery store register provided a comprehensive overview of the market trends since 1978.

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