28th May 2025 08:38
(Alliance News) - UK grocery sales climbed as warm weather drove higher spending in summer products and consumers sought out promotions, data from Kantar showed on Wednesday.
Total grocery sales increased 4.2% to GBP35.52 billion in the twelve weeks to May 18, from GBP34.07 billion the previous year.
In the four weeks to May 18, take-home grocery sales grew by 4.4%.
In the same period, grocery price inflation saw a marked rise to 4.1% from 3.3% in the four weeks to April 20. The measure was recorded at its highest level since February 2024.
"This latest jump in grocery price inflation takes us into new territory for 2025. Households have been adapting their buying habits to manage budgets for some time, but we typically see changes in behaviour once inflation tips beyond the 3% to 4% point as people notice the impact on their wallets more," said Kantar's Head of Retail and Consumer Insight Fraser McKevitt.
McKevitt said higher spending at the start of May was supported by warm weather.
Sales of chilled burgers grew 27%, potato salad was up 32% and coleslaw and prepared salads grew 19% each as barbecue season started early for retailers.
"As the mercury rose, sun cream sales also shot up by 36% as Brits made the most of the spring sun," McKevitt said.
While grocery price inflation was higher, value promotions continue to attract customers. Spending on deals was up 5.1% versus May last year.
McKevitt commented: "Trimming prices remains the most popular way for retailers to draw in customers, with 80% of promotional spending this period down to straightforward price cuts."
Kantar said the latest data marks a full year for Ocado as Britain's fastest growing grocer. Sales at the online joint venture between Marks and Spencer Group PLC and Ocado Group PLC climbed by 14.9% in the 12 weeks to May 18.
Tesco PLC boosted sales by 5.9% on-year to increase its share by 0.4 percentage points to 28.0% of the market, while sales growth at J Sainsbury PLC was up by 4.7% to take a 15.1% share.
Morrisons sales rose by 1.1% with its share standing at 8.4%, down from 8.6%. Asda how holds 12.1% of the market, down from 13.0% a year ago.
Waitrose maintained a 4.6% share as sales grew by 4.0%. Iceland's sales rose by 1.9%, giving the frozen food specialist a 2.2% market share.
The industry has faced cybersecurity incidents recently, notably at M&S and convenience retailer Co-op.
Despite the challenges, Co-op increased sales by 0.6% to take 5.3% of the market.
By Michael Hennessey, Alliance News reporter
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