S Group Defies Market Downturn by Boosting Grocery Sales through Inflation-Resistant Strategy

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

Despite the decline in sales volume, grocery stores experienced growth in value last year. This was due to rapid inflation, which caused the overall market to increase by six percent to 22.9 billion euros. S Group, however, stood out as the only trade group to grow thanks to their strategy of maintaining an affordable shopping basket by reducing prices.

According to Nielsen IQ’s grocery store register, S Group’s market share increased by 1.3 percentage points to 48.3 percent last year, while their sales grew by 8.9 percent, outpacing the overall market growth. The group’s primary drivers of this growth were Prisma and S-market, which saw their sales increase at a faster rate than the market average.

In contrast, K Group experienced a decrease in market share of 0.9 percentage points to 34.3 percent last year, while Lidl saw their market share decrease by 0.2 percentage points to 9.6 percent despite both groups experiencing growth in grocery sales of less than four percent each year for two consecutive years now due to accelerated inflation and declining consumer purchasing power respectively

Leave a Reply