S Group’s Successful Strategy of Affordable Shopping Baskets: Boosting Market Share in a Declining Grocery Store Market

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

Grocery store sales declined significantly for the second consecutive year last year. Despite this, S Group was able to increase its market share and become the only trade group to grow thanks to price reductions that resonated with consumers facing weakened purchasing power. According to Nielsen IQ’s grocery store register, S Group’s market share increased by 1.3 percentage points to 48.3 percent, while its grocery sales grew by 8.9 percent, outpacing the overall market growth.

In contrast, K Group’s market share decreased by 0.9 percentage points to 34.3 percent and Lidl’s market share decreased by 0.2 percentage points to 9.6 percent, both with growth in grocery sales of less than four percent. The decline in sales volume was significant as it reached a decrease of 1.1 percent after a 5.2 percent drop the previous year, but the value of sales increased by six percent to reach €22.9 billion 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 while K Group focused on throw-in offers and low-cost own products and Lidl emphasized affordability and introduced a new loyalty program . 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, produced in cooperation with trade groups and individual operators since 1978 provides a comprehensive overview of market trends in this industry

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