S Group Defies Industry Slump, Increases Market Share with Strategic Pricing Initiatives

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

In recent years, the grocery industry has seen a decline in sales volume for the second consecutive year. However, despite this decline, there were some notable exceptions to this trend. Last year, S Group’s market share increased significantly, becoming the only trade group to grow thanks to its price reductions that resonated well with consumers facing weakened purchasing power.

S Group’s market share increased by 1.3 percentage points to 48.3 percent last year. This growth was driven by Prisma and S-market, which experienced sales growth at a faster rate than the market average. Meanwhile, 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 experiencing growth in grocery sales of less than four percent.

Despite declining sales volume, the value of sales increased by six percent to 22.9 billion euros due to rapid inflation. S Group’s strategy of maintaining an affordable shopping basket by reducing prices proved successful as it initiated price reductions early in the year and continued them throughout the year. K Group focused on throw-in offers and low-cost own products while Lidl emphasized affordability and introduced a new loyalty program

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