The UK’s supermarket landscape undergoes notable changes as Christmas approaches.
- Asda is the only major supermarket experiencing a drop in sales, marking a 4.2% decline.
- While Ocado shows impressive growth, reinforcing its position as the fastest-growing UK retailer.
- M&S enjoys a sales increase, entering the festive period with a 10.6% rise.
- Shoppers increasingly favour premium products, pushing supermarket sales towards a significant milestone.
In a surprising turn of events, Asda, one of the UK’s leading supermarkets, has seen a 4.2% decrease in sales in the lead-up to the Christmas season. This decline has resulted in Asda’s market share slipping by 1.1 percentage points, bringing it down to 12.1%. This is a unique position given the period’s typical retail growth dynamics.
Contrasting Asda’s performance, Ocado’s sales have soared by 16.2%, cementing its status as the fastest-growing retailer in the UK. The increase in sales has elevated Ocado’s market share by 0.2 percentage points, reaching 1.8%.
Simultaneously, M&S has reported a 10.6% boost in its sales, reflecting a positive onset to the busy festive season. This increment has nudged its market share up to 3.7%, despite the intense competitive retail environment.
Meanwhile, Waitrose, another key player in the upmarket grocery sector, witnessed only a modest rise in sales, at 1.9% during the same period. This performance suggests a less robust growth trajectory as compared to its competitors.
Amid these shifts, overall supermarket sales in December are anticipated to reach over £13 billion, largely driven by increased demand for premium product lines. Spending on premium own-label items has grown, constituting 5% of total spending, with expectations to nearly reach 7% by the month’s end.
As the festive period progresses, the varied performances among UK supermarkets highlight shifting consumer preferences and competition in the market.
