Tesco has reached a significant milestone, achieving its highest market share in seven years as supermarket sales are poised to surpass £13 billion during the festive season, according to the latest data.
In recent weeks, Tesco’s market share has surged to 28.1%, driven by a 5.2% increase in sales over the 12 weeks leading up to December 1. This performance marks a notable achievement for the retailer, surpassing its previous records since December 2017.
Sainsbury’s, another leading supermarket, also experienced growth. Its market share rose by 0.3 percentage points to 15.9%, with a 4.7% increase in sales year-on-year. Collectively, Tesco and Sainsbury’s now command 44% of the market.
The online food retailer Ocado reported an impressive 8.7% growth in sales, reaching a 1.8% market share. This growth outpaced the overall online market, which expanded by 3.6%, illustrating Ocado’s robust performance in the digital space. Customers spent a total of £4.2 billion online across the same period.
Meanwhile, Lidl emerged as the fastest-growing physical store grocer, with a 6.6% rise in sales and an increase in market share by 0.3 percentage points to 7.7%. Footfall at Lidl stores saw a significant boost, climbing nearly 10% compared to the previous year.
Morrisons, holding 8.6% of the market, achieved a 2% rise in sales, while Waitrose performed slightly above the market average with a 2.6% increase. Aldi’s sales also grew by 2.1% during this time frame.
Fraser McKevitt, head of retail and consumer insight at Kantar, noted the diversity in shopping behaviour as consumers prepare for the holiday season. “The number of different retailers we visit in the run up to Christmas is higher than at other times during the year, including wider high street brands like M&S,” he stated.
In the weeks leading up to December 1, grocery sales at M&S rose by 10.4%, with nearly one-third of households purchasing food, drink, and other items to enjoy at home. As take-home sales increased by 2.5% over the month, supermarkets are set to continue this trend, projecting sales to exceed £13 billion, a record high for the period.
McKevitt highlighted that Monday, December 23, is expected to be the busiest day for supermarkets, although signs are evident that shoppers are already stocking up. Sales of Christmas-related items such as sweet biscuits and Christmas puddings have seen considerable increases, with sweet biscuit sales doubling compared to the previous month.
Spending on premium own-label products is also projected to rise to nearly 7% in December, having already reached 5% in the recent four weeks. This shift indicates a consumer preference for high-quality options during the festive season.
The data indicates a dynamic retail environment as supermarkets gear up for the Christmas period. With Tesco achieving its highest market share in years, and other retailers like Sainsbury’s and Ocado showing robust sales growth, the competitive landscape is becoming more diverse. As consumer spending habits evolve, especially during the festive season, retailers are witnessing impressive gains and strategising to meet demand.
