Grocery sales grow as discounters increase market share

Sales across the grocery market grew 1.3% to £26.6bn in the 12 weeks to October 6, while the average spend per trip inched up 0.6%, according to the latest Kantar data.

Lidl and Aldi continued to collectively gain market share on the big four. Lidl and Aldi’s combined grocery sales jumped 0.8% year on year – an increase worth £1bn annually. Aldi reported a 7.3% increase to 8.1% of total market sales, while Lidl reported an 8.2% jump to 6%.

Combined, the discounters now account for 14% of total grocery market sales.

Keeping its mantle as the fastest-growing grocer in the UK, Ocado reported 13.3% growth in market share to 1.4% of total sales.

Among the big four, Sainsbury’s was the only supermarket to report growth for the 12 weeks, up 0.6%. Tesco sales fell 0.2%, while Asda and Morrisons saw sales fall by 0.9% and 1.8% respectively.

Kantar head of retail and consumer insight Fraser McKevitt said: “The grocery market seems to have finally edged out from under the shadow of 2018 and tough comparisons with the strong summer sales of last year. Sainsbury’s performance reflects this – increasing sales at its fastest rate since October 2018 to make it the only big four retailer to achieve growth.”

While Kantar noted that uncertainty over when and how the UK will leave the EU continued, it had not seen evidence of widespread stockpiling from customers.

McKevitt added: “Well-documented concerns about the availability of popular products in the event of a no-deal Brexit have not yet translated into a consistent increase in purchasing.

“Sales of dry pasta and healthcare products over the past four weeks were 9% and 7% higher than the same time last year, but those of canned products fell by 2% and frozen food by 1%.”