Farmfoods Becomes Fastest Growing Grocer, Beating Supermarkets
During the downturn of the UK’s economy, consumers turned their attention to value for money when shopping, trying to find the elusive combination of cheap-cheap prices and product quality, but favouring the former over the latter. Particularly when it came to food, frozen goods were what the customers turned to – inherently lower prices, less perishable, that kind of thing.
So it shouldn’t come as much of a surprise that a food retailer that specialises in frozen goods has emerged as the current growth leader for the grocery market for the previous quarter. But we’re not talking the big, well-known Iceland here, but the much smaller company, Farmfoods.
In fact, companies that offer discounted prices (Aldi, Lidl, and of course, Farmfoods) tend to be showing the most considerable growth overall especially when compared with the likes of Tesco and Morrisons, both of whom witnessed a fall in sales, according to market analysis from Kantar Worldpanel.
Farmfoods started off as a simple meat-processing company in Aberdeen, Scotland, and over the past 50 years have expanded to become a frozen food specialist with over 300 specialist freezer centres across the UK. But even so, it is still not considered one of the food retail giants.
Analyst companies find it difficult to monitor sales for companies like Farmfoods, compared with bigger, better-known supermarkets, because of its small scale. However, it is thought that Farmfoods’ latest growth results are simply down to more people shopping there. “[Farmfoods] may not be the greatest product quality, but it is appealing to the sort of customer who is really value-driven,” explained Andy Stevens, analyst from Verdict Research.
When compared with the same quarter last year, Aldi saw a rise of 32% sales growth while Lidl’s sales rose by 17.2%, in an economy that has seen the UK’s grocery market growth slip to its slowest pace in 7 years. Farmfoods still obliterated these results with an astounding 43.9% in the quarter ending on 2 February. Verdict Research have also predicted that Farmfoods will see a further rise of 9% in sales if they continue at the current rate of increase, which is well beyond the expected 2% in the grocery market as a whole.
In a fixing economic climate, it’s possible that shoppers will be feeling less strain on their purses and wallets this year, which might slow down the growth rate of frozen food retail specialists, but right now, all the focus is on Farmfoods’ strength in a market that is still weak. Farmfoods could be the company that brings the grocery market back up.