Newly released data from Kantar reveals significant shifts in the retail landscape, with Lidl taking the lead as the fastest-growing supermarket for physical stores over 15 consecutive periods. Simultaneously, Ocado has emerged as the top performer in online retailing during the same timeframe.
Lidl has cemented its position as the leading growth retailer, attracting an additional 326,000 shoppers in the 12 weeks leading up to 3 November. Notably, the chain has experienced a 22% increase in fresh produce sales, underscoring its appeal to consumers seeking quality and value.
In parallel, Ocado has marked the period with a commendable 9.5% rise in its sales, reflecting a growing preference for online grocery shopping. Meanwhile, Tesco and Sainsbury’s have also demonstrated robust performance, exceeding market averages with sales growth of 4.6% and 4.4%, respectively. Tesco’s market share now stands at 27.9%, while Sainsbury’s has climbed to 15.5%, accompanied by an increase in shopper visits.
Interestingly, Morrisons, although experiencing a slower sales increase of 2.4%, has managed to outpace market averages for the first time since June 2021. This positive change is a hopeful sign for the supermarket chain, indicating potential growth avenues.
Conversely, Asda and Co-op are facing challenges, both witnessing declines in sales and market share. Asda’s sales have fallen by 5.5%, reducing its market share to 12.5%. Co-op’s sales have dipped by 2.1%, bringing its market share to 5.7%.
The overall market dynamics are intriguing, as Kantar reports grocery sales have grown by 2% over the four weeks to 3 November, reaching £11.6 billion. This period marked the busiest for supermarkets since the COVID-19 lockdown in March 2020, with shopping trips by households hitting a four-year peak of 480 million trips. Despite increased footfall, grocery price inflation was recorded at 2.3%, slightly up from September but maintaining typical levels, remaining below 3% since early summer.
Fraser McKevitt from Kantar noted the gradual increase in shopping frequency, yet highlighted that it has not reached pre-pandemic levels. Households currently average just over four shopping trips per week, illustrating a steady recovery in consumer behaviour.
The retail sector is witnessing significant evolution, with Lidl and Ocado setting the pace in their respective domains. While some retailers are thriving, others like Asda and Co-op are grappling with market challenges, underscoring the competitive nature of the supermarket industry.
