Why are supermarket sales flat?
Brexit, fears of recession and price rises blamed for weak data
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Supermarket sales have failed to climb this summer despite record temperatures in July, according to new industry data.
The sector enjoyed sales of £26.9bn for the 12 weeks to 11 August - little changed from the same period last year when the football World Cup and heatwave offered them a boost.
The big four supermarkets all suffered a drop, as discounters Aldi and Lidl continued to “gnaw at their market share,” says Sky News.
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Asda, which faced a decline of 1.5%, warned as recently as last week that its shoppers were being hurt by Brexit uncertainty.
A survey of UK households by IHS Markit released earlier this week found that consumer confidence was at a three-month low due to fears of a possible recession.
However, the head of retail and consumer insight at Kantar, Fraser McKevitt, blamed the weather and price rises for the supermarket's flat performance.
The data specialist said: “The memory of last year still looms large for retailers and this summer's comparatively poor weather, combined with low levels of like-for-like price rises, have made growth hard to find for retailers.”
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Not even July’s hottest day on record was enough “to shift the market into growth,” he added.
Sales at Tesco fell by 1.6% and Morrisons saw a 2.7% decline. In contrast, sales at Aldi rose 6.2% while Lidl climbed by 7.7%.