No immediate Brexit impact on UK grocery sales, prices - Kantar Worldpanel

(Adds detail, table, background)

LONDON, July 26 (Reuters) - Britain's decision to quit the

European Union in last month's referendum has not had an

immediate impact on grocery prices or the volume of goods sold,

according to industry data published on Tuesday.

Following the "Brexit" vote on June 23, several surveys have

indicated a sharp drop in UK consumer confidence. However, there

is little evidence that has translated into lower spending.

Market researcher Kantar Worldpanel said overall UK grocery

sales rose 0.1 percent year-on-year in the 12 weeks to July 19,

while deflation was 1.4 percent.

"The EU referendum result has had no immediate impact on the

prices retailers are charging or the sales volumes consumers are

buying over the past 12 weeks," said Fraser McKevitt, head of

retail and consumer insight at Kantar Worldpanel.

"The nation's average shopping basket is 1.4 percent cheaper

than a year ago, exactly the same level of deflation as reported

last month, and it remains to be seen if the Brexit vote will

bring about any price rises this year."

Some analysts think prices will rise as a drop in sterling

following the referendum increase retailers' buying costs.

Rival research group Nielsen (EUREX: 11400372.EX - news) said the value of UK grocers'

sales fell 2.4 percent year-on-year over the four weeks to July

16 - the worst figure since the four weeks ending July 19, 2014.

But it blamed the decline on wet and cool weather, rather

than Brexit.

Kantar said market leader Tesco (Xetra: 852647 - news) 's sales fell 0.7 percent

year-on-year over the 12 weeks, with its market share falling

0.2 percentage points to 28.3 percent - its slowest rate of

share loss since March 2014.

Morrisons, the No. 4 player, produced its best

result since January with a 1.8 percent sales fall - its figures

still reflecting a wave of store disposals last year.

Asda, the British supermarket arm of Wal-Mart that

is No. 3 in the sector, remained the laggard with a 5.6 percent

fall in sales. New (KOSDAQ: 160550.KQ - news) chief executive Sean Clarke started at Asda

on July 11.

No. 2 Sainsbury (Amsterdam: SJ6.AS - news) 's saw sales fall 1.1 percent,

partly reflecting a move to phase out multibuy offers.

German discounters Aldi and Lidl

recorded record market shares of 6.2 percent and 4.5 percent

respectively, reflecting sales growth of 11 percent and 12.5

percent that is driven by store openings.

The industry's lower prices reflects the impact of Aldi and

Lidl on the market and the market's response, as well as

deflation in categories such as pork, detergents and crisps.

Market share (percent) and sales increase/decrease (percent)

12 wks to 12 wks to pct change

July 17, July 19, in sales

2016 2015

Tesco 28.3 28.5 -0.7

Sainsbury's 16.3 16.5 -1.1

Asda 15.5 16.4 -5.6

Morrisons 10.7 10.9 -1.8

Co-operative 6.4 6.3 2.1

Aldi 6.2 5.6 11.0

Waitrose 5.1 5.0 1.6

Lidl 4.5 4.0 12.5

Iceland 2.1 2.0 2.8

Source: Kantar Worldpanel

(Reporting by James Davey; Editing by Mark Potter)