Recent data indicates a shift in the supermarket landscape as Tesco achieves substantial growth.
- Tesco now commands 28% of the market, its highest share since 2017, with a significant profit increase.
- Asda continues to face challenges, with its market share decreasing by more than one percentage point.
- Sainsbury’s and Ocado also show growth, each enhancing their market positions.
- Seasonal consumer behaviour influences supermarket sales as Halloween approaches.
Tesco’s market share has risen to an impressive 28%, marking its largest share since 2017. This growth is reflected in their financial performance, with a 10% surge in half-year profits and a 4% increase in sales, as reported by Kantar.
In contrast, Asda is experiencing a decline in market share, dropping from 13.7% to 12.6% in the same period a year earlier. This downturn highlights ongoing struggles within the company.
Sainsbury’s has seen a slight uptick in its market share, increasing by 0.4 percentage points to reach 15.2%. This improvement is accompanied by a 5.1% rise in sales over the reported period.
Ocado continues its rapid growth trajectory, boasting a 10% increase in sales in the last three months. This marks their eighth consecutive month as the fastest-growing grocer, with a modest market share increase to 1.8%.
According to Fraser McKevitt of Kantar, grocery price inflation rose to 2% recently. Despite this, some categories are seeing price reductions, with notable decreases in costs for items like toilet and kitchen rolls, and pet food. McKevitt anticipates that Halloween will likely bolster retail figures, as purchases of themed products like pumpkins and confectionery rise significantly.
The current dynamics in the grocery sector illustrate shifting consumer preferences and competitive challenges facing retailers.
