According to the latest industry data release by Kantar, 13 February 2020, the grocery sector is showing a decline across all major supermarkets including the top four with a combined decline of 3.4% along with Waitrose (-0.4%), with Aldi and Lidl both increasing their share by over 8% each.
One area that is thriving is the bargain stores sector, showing a year on year growth in grocery of 7.2%. Bargain stores have seen an increase in influencer support, most notably Mrs Hinch. Top influencers search for convenience, variety and price for their followers and are generally supporting the bargain stores as a one-stop-shop for all home essentials.
ACE, the leading laundry and cleaning brand, has seen a 35% year on year increase in sales of the whole range, from Whites to Colours and now the new Colour powder launched in 2019. ACE is stocked across all the multiple bargain stores such as B&M and Poundland and has seen a continued growth in demand during 2019. However, the company has noticed a decline in the variety of products that supermarkets are stocking, choosing less options and shelf space offering little variety for its customers.
Shirley Peet, marketing manager for ACE in the UK, has noticed the shift: “It has been obvious throughout 2019 that the shift in sales of our full range of ACE has been increasing consistently in all multiple branch bargain stores. I think this is showing a shift in consumer shopping habits. Where previously a shopper would do their full shop at the supermarket, they are now opting to shop for household essentials, such a cleaning products, laundry and even health and beauty at the bargain stores. It’s not just the price, but the options available.”
Long gone are the days consumers would visit multiple places to do a weekly grocery shop. However, this new trend shows that bargain stores are that slightly quicker to tap into consumer trends and have been able to grow their market share.
Peet continues: “Generally the bargain stores are able to respond quicker to consumer trends than big supermarkets. Supermarkets are learning to be more agile, but they need to move quicker to get to a point where they offer a wider variety of brands, at varying price points, to prevent shoppers continuing to move to bargain stores for non-food items. We have always managed to keep ACE at a very reasonable price for consumers, without compromising on effectiveness or quality standards and we are pleased that consumers have continued to embrace this. The 35% year on year sales growth is a testament to the hard work that has gone into products that consumers love, need and obviously want.”