4th Feb 2025 08:48
(Alliance News) - UK grocery sales growth sped up last month, with most of the largest supermarkets increasing their market share, data from Kantar showed Tuesday.
For the 12 weeks to January 26, total grocery sales rose 2.8% on-year to GBP36.83 billion. In January alone, they were 4.3% higher. In the four weeks to December 29, sales had risen 2.1% on-year.
"Supermarkets were dishing out the discounts this new year, and consumers responded. Spending on promotions rose year-on-year by GBP274 million, accounting for 27.2% of sales – the highest level in January since 2021," said Fraser McKevitt, head of retail & consumer insight at Kantar.
He added that usually cheaper non-branded products remained popular, as their proportion of sales hit a record high of around 52% in January.
Annual grocery price inflation stood at 3.3% for the four-week period to January 26, Kantar said, easing from 3.7% a month prior.
As is usual for the new year, customers spent on healthy choices.
Nathan Ward, business unit director for usage & out-of-home at Kantar said: "Rolling into the new year, health tends to play a bigger role in our grocery choices. Over a quarter of take-home food and drink in January is chosen with health at least partially in mind, as shoppers tell us they want to eat less processed food and feel the benefit of fibre and vitamins."
Tesco PLC increased its market share to 28.5%, compared to 27.8% a year ago. The largest supermarket chain in the UK reported 5.6% on-year grocery sales growth in the reported period.
Sainsbury's market share edged up to 15.9% from 15.7%, with grocery sales climbing 4.2%.
Asda's market share fell to 12.6% from 13.6%, as sales declined 5.2%.
Aldi's market share edged up to 10.2% from 10.1%, with sales up 4.2%.
The Morrisons market share fell to 8.6% from 8.8%, with sales virtually unchanged.
The UK's sixth largest supermarket chain by market share remained Lidl. Its market share increased to 7.2% from 6.9%, amid sales growth of 7.4%.
The 10th largest UK supermarket chain by share of the market Ocado Group PLC was the fastest growing grocer for the ninth consecutive month. Spending at the online-only grocer jumped 11% on-year, with its market share increasing to 1.9% from 1.7%.
By Tom Budszus, Alliance News slot editor
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