In a notable development within the retail sector, Lidl and Ocado have emerged as the fastest-growing retailers according to recent data from Kantar, marking a significant trend in consumer behaviour.
Lidl has reinforced its position as the leading bricks-and-mortar retailer in growth, achieving this feat for the 15th consecutive period. For the 12 weeks leading up to 3 November, Lidl attracted 326,000 additional customers, surpassing all competitors. This surge was led by a remarkable 22% increase in fresh produce sales, showcasing its expanding influence in the market.
Meanwhile, Ocado, the online supermarket, recorded the largest growth during this period, with sales increasing by 9.5%. This signifies a robust expansion in its customer base and presence in the digital retail space. However, traditional giants like Tesco and Sainsbury’s also experienced growth, with Tesco’s sales rising by 4.6%, capturing 27.9% of the market, and Sainsbury’s seeing a 4.4% increase in sales, raising its share to 15.5%. Both retailers noted an increase in shopper visits and frequency during this time.
Conversely, Asda and Co-op faced challenges, being the only major grocers with a decline in sales and market share. Asda’s sales dropped by 5.5%, reducing its market presence to 12.5%, while Co-op experienced a 2.1% dip, bringing its share down to 5.7%. This downturn occurs as take-home sales across grocery stores rose by 2% to £11.6 billion over the four weeks to 3 November, the highest monthly sales figure this year.
Fraser McKevitt, Kantar’s head of retail and consumer insight, commented on the situation, stating, “October 2024 was the busiest month for the supermarkets since March 2020, when people were preparing for the first national lockdown. Trip numbers have been going up gradually for some time, but this steady march hasn’t reached pre-covid levels of shopping frequency just yet.” This increase was evident as the number of shopping trips reached a four-year high of 480 million across households.
The period saw grocery price inflation at 2.3%, slightly above September’s figures but remaining within typical levels. Notably, inflation has stayed below 3% since early summer, which may influence consumer spending habits amid broader economic conditions.
The rise of Lidl and Ocado amidst an overall increase in retail activity highlights shifting consumer preferences, particularly towards fresh produce and online shopping. In contrast, the struggles faced by Asda and Co-op indicate potential areas for strategic reassessment as the market continues to evolve.
