The latest Worldpanel by Numerator (formerly Kantar) grocery market share update showed that prices continued to rise fastest in the fresh meat market as retailers anticipate record Christmas spend.
Lidl boosted its sales by more than 10.8% over the 12 weeks, taking its share to 8.2%. Tesco now accounts for 28.2% of the market as spending at the grocer rose by 5.9%, and Sainsbury’s reported sales growth of 5.2% to reach a 15.7% market share.
Spending at Morrisons nudged up by 2.3% with a market share of 8.3%, and Waitrose achieved a share of 4.4% after sales rose by 3.8%. Grocery sales at M&S over the 12 weeks increased at the fastest rate since June at 8.8% higher than one year ago.
Convenience retailer Co-op now holds 5.4% of the market, while Asda takes 11.6%.
Ocado posted a record share for the 12 weeks to 2nd November, hitting 2.1% and remaining the fastest growing grocer for the third month in a row. At 15.9%, Ocado registered its highest rate of sales growth in over four years since April 2021.
Consumers seek cost savings through promotions
Grocery inflation slowed to 4.7% over the four weeks to 2nd November, while take-home sales at the grocers grew by 3.2%. Spending on deals rose by 9.4%, as spending on full priced goods rose by just 1.8%. Prices are rising fastest in markets including fresh meat (unprocessed).
Fraser McKevitt, head of retail and consumer insight at Worldpanel, commented: “Christmas ads are hitting our screens and the race to the big day is on in the supermarket sector. Retailers are very alive to the financial struggles that some households are facing, not least ahead of this year’s Budget. They’re eager to show how they’re offering shoppers value for money, putting the emphasis on price cuts rather than multibuy offers. It’s not just the Grinch who’s looking for savings with just shy of 30% of consumer spending at the grocers on promoted items in October, a figure that we expect to go even higher as we get closer to Christmas.”
Worldpanel predicted a sales record for retailer premium lines this year, stating that there was the potential for sales to hit more than £1 billion in December.
McKevitt continued: “It’s important to remember that shoppers often look for great value and quality, not just the cheapest product. At Christmas especially people want to treat themselves and throughout the cost-of-living crisis we’ve seen them turning to retailers’ premium own label lines to do that in a way that’s more affordable. Sales of these goods were worth £582 million in the latest month and they are likely to double as Christmas edges nearer, topping £1 billion in the month of December for the first time ever.”
Worldpanel observed that spending on home delivery rose by 11% this month, with every retailer that offers the service boosting sales.
McKevitt stated: “Online growth is primarily being driven by the already converted as existing shoppers continue to value the convenience of the format and make more orders. On average, households who use online grocery now buy three shops a month, making up a whopping 61% of their spending at the grocers.”
