Asda and the Co-op have continued to lose market share while a rise in grocery inflation has led to overall sales increasing significantly for Tesco, Sainsbury’s and Lidl.
Take-home sales at the grocers rose by 3.8 per cent in the four weeks to August 4, 2024, compared with the same period a year ago, according to the latest data from Kantar.
However, sales at Asda have fallen by nearly £300m over the past year, from £4.52bn to £4.25bn. Its share of the market has dipped by 1.1 per cent, the largest market share change of any grocer.
Asda is currently in the midst of an ambitious turnaround plan.
Tesco streaked ahead in the race for Britiain’s shoppers as the country’s largest grocer maintained its streak of winning market share every month in the past year.
Its hold of the market climbed by 0.6 percentage points to 27.6 per cent, while sales jumped by 4.9 per cent to £9.32bn, up from £8.88bn.
Inflation at 2019 levels
Grocery inflation rose to 1.8 per cent this month in the first increase since March 2023 as good weather and sporting events encouraged Brits back into stores.
Fraser McKevitt, head of retail and consumer insight at Kantar, said: “Having reached its lowest rate in almost three years in July, August saw inflation nudge up again slightly.
“While this is noticeable following 17 straight months of falling rates, it actually marks a return to the average levels seen in the five years before the start of the cost of living crisis.”
Shoppers have continued to take advantage of deals: Spending on deals rose by 15 per cent, while sales of products at their usual price saw no increase.
Summer spending
The Euros final and the opening ceremony of the Olympics both pushed up spending in July – particularly on drinks and snacks.
Spending on beer on the final of men’s UEFA European Football Championship reached £10m, the most spent on a Sunday in more than three years.
“While people continue to make smart choices to manage their budgets, we should never underestimate Britons’ love of big occasions,” McKevitt said.
Sales of wine were up 35 per cent during the start of the Olympics.
Good weather, too, meant that sales of burgers leapt by 32 per cent compared with the same time last year, as Brits headed out to the park.
Chilled prepared salad sales rose by 22 per cent while the amount spent on ice cream rose by 23 per cent.
However, 28 per cent more was spent on cough lozenges as people battled with Covid-19 and other summer colds.
How did Sainsbury’s, Morrisons, Waitrose and Iceland perform compared to Asda and the Co-op?
Sainsbury’s market share rose by 0.5 percentage points over the 12 weeks to August 4, compared to the same period last year – its largest year-on-year share gain since July 1997.
It was again the fastest growing of the traditional supermarkets, with sales increasing by 5.2 per cent to £5.25bn, up from £4.89bn the previous year.
Discounters Lidl and Aldi both also saw sales growth. Buoyed by a 7.8 per centboost in sales, Lidl won an extra 0.4 percentage points of the market, taking its share to 8.1 per cent. Aldi’s market share reached 10 per cent.
Morrison’s market share rose by 0.1 per cent, to 8.6 per cent. Sales were £2.9bn, up by 1.4 per cent from £2.87bn.
Waitrose’s market share rose by 0.1 per cent to 4.5 per cent, while sales reached just over £5bn. up from £1.44bn.
Iceland’s share of the market was steady. Sales rose to £783m from £752m.