• Fri. May 24th, 2024

S Group’s Price Reduction Strategy: Boosting Market Share Amidst Declining Grocery Sales

BySamantha Nguyen

Mar 27, 2024
S Group’s market share increased last year as the sole trading group

Despite a decline in grocery store sales for the second consecutive year, the S Group managed to increase its market share thanks to price reductions that appealed to consumers facing reduced purchasing power. According to Nielsen IQ, the S Group’s market share increased by 1.3 percentage points to 48.3 percent, with grocery sales growing by 8.9 percent from the previous year, outpacing the market.

On the other hand, both K Group and Lidl experienced slower sales growth compared to the average value development. The K Group’s market share decreased by 0.9 percentage points to 34.3 percent, while Lidl’s market share dropped by 0.2 percentage points to 9.6 percent. The overall sales volume of grocery stores declined by 1.1 percent from the previous year, despite a six percent increase in sales value due to rapid inflation.

To attribute their success, S Group’s grocery store manager emphasized on maintaining an affordable shopping basket strategy by reducing food prices starting from March. In contrast, K Group focused on throw-in offers and low-cost own products while Lidl emphasized affordability by launching a new loyalty program. Online grocery shopping accounted for 626 million euros in sales, growing by 6.7 percent but slower than the previous year as per Nielsen IQ grocery store register data compiled annually in collaboration with trade groups and operators since 1978 which provides insights into industry performance since then

By Samantha Nguyen

As a content writer at newsskio.com, I weave words to craft compelling narratives that captivate readers and bring stories to life. With a keen eye for detail and a passion for storytelling, I strive to create engaging and informative content that resonates with our audience. Whether I'm delving into the latest news trends or exploring unique angles on various topics, my goal is to deliver quality content that informs, entertains, and inspires. Join me on this journey as we uncover the news stories that matter most.

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