14th Oct 2025 08:30
(Alliance News) - UK grocery price inflation has accelerated in recent weeks, numbers on Tuesday showed, prompting consumers to hunt for value as spending on promotions spiked to its highest level since April.
Data from Worldpanel by Numerator, showed like-for-like grocery price quickened to 5.2% for the four weeks to October 5, the loftiest figure since July. In the four weeks to September 7, the rate of inflation was 4.9%.
Worldpanel said spending on offers has spiked, with this likely to continue rising as the Christmas period nears.
"Spending on offers has hit its highest level since April at 29.4%, as consumers hunt for deals to ease the burden on their wallets. Promotions often jump in the run up to the festive season so it's likely the trend will continue as we get closer to December," Worldpanel analyst Fraser McKevitt said.
The fastest-growing grocer was Ocado Retail, the joint venture between Ocado PLC and Marks & Spencer Group PLC, while Tesco PLC won even more market share. Elsewhere, Asda lost ground and Aldo remained in fourth place.
Total UK grocery sales in the 12 weeks to October 5 rose 4.3% on-year to GBP35.16 billion from GBP33.70 billion.
Tesco's sales improved 6.9% to GBP9.96 billion, for a market share of 28.3%, rising from 27.6% a year earlier. J Sainsbury PLC's market share was largely steady at 15.3% from 15.2%, with sales climbing 5.2% to GBP5.38 billion.
Ocado sales surged 14% to GBP698 million. The online-only grocer now has a 2.0% market share, up from 1.8% a year earlier.
Asda's market share slimmed to 11.8% from 12.7%. Last week, Tuesday, Asda announced a slew of price cuts, renewing fears of a price war in the sector.
Asda said it was cutting prices by an average of 6% across a host of categories including core grocery, household, non-edible and free from – with some prices dropping by over 30%.
In total, Asda said it is cutting the cost of 956 everyday grocery products both in-store and online, as part of its commitment to Asda Price, including staples like pasta, cooking sauces, tea and coffee.
Aldi's market share over the 12-week survey was unchanged at 10.6%. It remains ahead of Morrisons, one of the traditional 'big four'. Morrisons has a market share of 8.3%, down from 8.5%. Lidl is hot-on-the-heels, with a market share of 8.2%, up from 7.7% a year earlier.
Worldpanel noted that away from rising costs, "concerns around health and sustainability" are front and centre in the mind of consumers. Legislation on high in fat, salt or sugar products came into force in October.
"Retailers have had this HFSS legislation in their sights for several years and they've been adapting, with consumer habits already shifting as a result. Three years ago, 28% of promotional spending on crisps was through multibuy offers but it's come right down since then to just 8% in the month to 5 October. There's a similar story in the cereal aisle with promotional spending on multibuy deals down from 18% to 5% during the same time period," Worldpanel analyst McKevitt said.
By Eric Cunha, Alliance News news editor
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