Tesco has emerged as a dominant force in the grocery sector, reaching its highest market share since December 2017.
In a remarkable development, Tesco now commands a 28.1% share of the grocery market, marking a significant achievement in the company’s recent history. New data indicates a 5.2% surge in sales over the 12 weeks leading up to 1 December, a crucial period that hints at burgeoning consumer confidence and strategic business initiatives.
Meanwhile, Sainsbury’s has also reported a growth in market share, rising by 0.3 percentage points to reach 15.9%. The increase reflects a 4.7% year-on-year boost in consumer spending through its outlets. Combined, Tesco and Sainsbury’s dominate the market with a 44% share, a testament to their robust market presence and customer loyalty.
Ocado, the online supermarket, has outperformed the overall online grocery market by raising its sales by 8.7%, capturing 1.8% of the market. This growth surpasses the online market’s average increase of 3.6%, wherein consumers spent a total of £4.2 billion during the same three-month timeframe.
Lidl has distinguished itself as the fastest-growing physical grocer, achieving a 6.6% rise in sales and increasing its market share by 0.3 percentage points to attain 7.7%. The retailer has experienced nearly a 10% year-on-year uplift in footfall, indicating a growing preference among consumers for discount shopping options.
Noteworthy changes are also evident at Morrisons and Waitrose, with the former securing an 8.6% market share following a 2% spending rise. Waitrose slightly outpaced the market with a 2.6% increase, while Aldi saw its consumer spending grow by 2.1% during the period.
Fraser McKevitt, head of retail and consumer insight at Kantar, highlighted the diversity in consumer preferences leading up to the festive season, noting that a third of households made purchases from M&S. Grocery sales alone at M&S saw an impressive 10.4% rise, revealing an inclination towards premium goods.
Kantar forecasts that December will see premium own-label product spending rise to nearly 7%, following a 5% peak in the most recent weeks. McKevitt predicts that Monday, 23rd December, will become the busiest day for supermarkets, further evidencing the anticipated spending boom as consumers prepare for festive celebrations.
With a conspicuous surge in sales and market share, Tesco and its competitors are poised for a potentially record-breaking festive period. The current trends not only reflect robust consumer demand but also strategic business manoeuvres within the grocery sector.
