9th Dec 2025 10:12
(Alliance News) - Britain's biggest supermarkets reported rising sales in the latest 12-week period as promotional spending ramped up and shoppers loosened their belts for festive indulging, according to new data from Worldpanel by Numerator on Tuesday.
UK grocery sales rose 3.6% to GBP35.90 billion in the 12 weeks to November 30 from GBP34.67 billion a year ago. Grocery price inflation held steady at 4.7% in November, while take-home sales rose 3.4% below inflation in November, as retailers ramp up investments in promotions ahead of Christmas.
Data shows 31.2% of November spending was on promoted items, up from 30% year-on-year. Fraser McKevitt, head of retail & consumer insight at Worldpanel, said retailers are trying to win consumers over during one of their most important trading periods.
"With the cost of living still biting for many this Christmas, just under one third of all spending is on promotion as supermarkets find ways to shield shoppers from the impact of price rises."
However, retailers are aware that while shoppers are tightening their belts, there is also a desire to indulge. "Retailers are savvy to the fact that at Christmas especially – even when times are tough – consumers still find the space in their wallet to spend on small treats," said McKevitt.
Online sales were up 8%, representing the second highest ever sales in a month since the pandemic high of February 2021.
Reflecting this jump, online grocer Ocado Group PLC reached a new record market share of 2.2%, up from 1.9% last year, with sales increasing by 15.8%. Shares in Ocado rose 3.5% to 195.05 pence on Tuesday morning in London, making it the second highest performer on the FTSE 250 index.
Despite online growth, bricks and mortar still dominates the grocery sector, with December 22 and 23 expected to be the busiest shopping days of the year.
Lidl made the biggest market share gain, rising to 8.1% compared to 7.6% last year. Fellow discounter Aldi saw spending increase by 5.1%, maintaining its market share at 10.5%.
J Sainsbury PLC sales rose 5.1%, increasing its market share to 16.0% from 15.7% a year ago. The UK's largest grocer, Tesco PLC, grew sales by 4.7%, boosting its market share to 28.3% from 28.0%.
Shares in Sainsbury's rose 1.3% to 312.40 pence on Tuesday morning in London, while Tesco stock fell 1.7% to 442.39p.
Waitrose & Partners and Iceland Foods grew ahead of the market at 4.0%, maintaining shares of 4.4% and 2.3% respectively.
Reflecting decreasing year-on-year sales, Co-operative Group Ltd's market share fell to 5.3% from 5.5%, and Asda Stores Ltd fell to 11.5% from 12.4%.
Across the wider high street, food and grocery sales at Marks & Spencer Group PLC grew 8.9% compared to last year. M&S shares were down 0.9% to 322.72p on Tuesday morning in London.
With the festive season underway, sales are expected to exceed GBP13.6 billion in December.
By Roya Shahidi, Alliance News reporter
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