Ocado has continued to solidify its position as the fastest-growing major supermarket in the United Kingdom, recording a significant sales increase of 16.2% over the past 12 weeks. This growth places it ahead of competitors M&S and Tesco, who are also showing promising figures as the festive season approaches.
According to newly released data from NIQ, discounter Lidl also experienced a robust sales increase of 11.6%, while M&S reported a rise of 10.6%. Meanwhile, Tesco’s sales grew by 5.1%, reflecting a steady performance in a competitive market. Overall, total till sales growth across UK supermarkets remained relatively stable at 3.7% in the four weeks leading up to 30 November 2024, slightly down from 4% the preceding month.
NIQ analysts attribute this easing in growth to several factors, including milder weather and the distraction of Black Friday sales, combined with consumers postponing their significant Christmas shopping trips until early December. Despite this, there was a notable uptick in in-store visits, which rose by 5.7%, surpassing the slight rise in online shopping occasions, which increased by 0.6%.
In terms of online sales, the share of Fast-Moving Consumer Goods (FMCG) remained strong, with an increase of 13.1% compared to the same period last year. NIQ forecasts that grocery spending will peak at £10 billion in the two weeks leading up to 21 December. The latter of these weeks is expected to be particularly lucrative, with anticipated spending of £6 billion as consumers prepare for Christmas celebrations.
Tesco has achieved its highest market share since December 2017, now holding 28.1% of the market, a significant milestone as competition intensifies. Speaking on these trends, Mike Watkins from NIQ UK advised, “Food retailers can prepare for this late rush starting next week as shoppers will be looking for fresh food, centre pieces for the dinner table and last-minute gifts, including a trade up to premium items.” Such insights indicate a robust shopping season as consumers finalise their festive preparations.
The current sales data indicate a dynamic and competitive supermarket landscape in the UK. As Ocado leads the charge with substantial growth, other retailers like M&S and Tesco are closely following suit, readying for the anticipated Christmas surge. The approach to this season is marked by strategic planning among supermarkets to cater to the evolving preferences of consumers who are balancing traditional in-store purchases with an increasing trend towards online shopping.
