Sales at UK supermarkets rose above inflation in February as Brits looked for cost-effective ways to treat themselves.
Take-home sales at the grocers rose by 3.6 per cent over the four weeks to 23 February, while prices rose 3.3 per cent, according to Kantar.
However, the headline figure masked a gulf between the performance of the UK’s major grocers. Sales at Asda continued to slide while Tesco and Sainsbury gained market share.
Grocery prices have inflated every month since last August, but the rate of growth remains far below the double-digit figures seen during the cost-of-living crisis. However, sales have remained stubbornly below inflation.
Food inflation was flat month on month, Kantar said.
Prices are rising fastest in markets such as chocolate confectionery, juices and butters, and falling fastest in cat and dog food, laundry and household paper products.
Spending on deals rose once again in February, with goods bought on offer now accounting for 27.6 per cent of sales, up 0.3 percentage points versus last year.
“[One of the big headlines of the past few years has been consumers’ hunt for value,” Kantar head of retail Sally Ball said.
“You might think that people would shop around more to find the best deals but in fact, that’s not the case. Households visited just under five different grocers this month, the lowest level in February since 2021.
“The growth of supermarket loyalty schemes is partly behind this as shoppers use them to unlock exclusive discounts.”
Asda sales continue to slump
Sales at Asda totalled £4.6bn in the 12 weeks to February 23, down five per cent year on year.
The TDR-owned supermarket was the only grocer to lose market share in the last year. It has struggled with the rise of discounters Lidl and Aldi, as well as with high debt, strikes, and an expensive detachment from its previous owner’s IT systems.
Tesco remained the UK’s largest supermarket, taking 28.3 per cent of the market and over £10bn in sales.
Sainsbury’s, too, made gains in the 12 weeks, increasing its share of the market from 15.5 per cent to 15.7 per cent compared to this time last year. Morrisons now holds 8.6 per cent of the market.
Ocado was the fastest-growing retailer for the tenth consecutive month with spending increasing by 9.6 per cent – holding its share of the market at 1.9 per cent.
Aldi achieved a market share of 10.3 per cent following a 4.9 per cent rise in sales – its highest rate since January 2024 – while Lidl’s share of the market rose 7.3 per cent.