S Group’s Success in Grocery Market: An Analysis of Price Reductions and Increased Market Share

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

Despite a decline in the volume of sales in grocery stores for the second consecutive year, S Group was able to grow its market share last year. This success can be attributed to the group’s strategy of offering 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, while its grocery sales grew by 8.9 percent, outpacing the overall market growth.

In contrast, 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 trade groups experienced growth in grocery sales of less than four percent due to factors such as accelerated inflation and declining consumer purchasing power.

Overall, despite a decline in the volume of grocery store sales for two years in a row, the value of sales increased by six percent to 22.9 billion euros due to rapid inflation. To maintain their competitive edge, trade groups focused on different strategies such as S Group’s pricing strategy and Lidl’s emphasis on affordability and loyalty program introduction respectively while K Group focused on throw-in offers and low-cost own products

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