Market share growth slows as grocers gear up for Christmas

Sales across the wider grocery market grew 1% in the 12 weeks to November 3, which was slower than the 1.3% growth rate in October, according to the latest Kantar data.

The data shows an increased focus on seasonal events and promotions, starting with Halloween at the end of October and running all the way through to Christmas. Kantar noted that sales of pumpkins were up 6% in October and were up 62% overall in the last decade.

In terms of Christmas spending, Kantar noted that £17m has already been spent on mince pies and £3m on Christmas puddings.

Slowing growth in the overall market saw the big-four grocers struggle to make gains. Tesco’s market share fell 0.6% and Sainsbury’s fell 0.2%. Meanwhile, falls were more marked at both Asda and Morrisons, which saw market share fall 1.2% and 1.7% respectively.

Lidl again was one of the big winners during the period, increasing its market share 8.8%, while fellow discounter Aldi saw sales grow 6.7%. The discounter also boasted the fastest growing premium own label line in the market.

The Co-op saw a 4.4% growth in sales, which meant it has now been growing market share continuously since May 2018. Iceland’s market share stayed level at 2.1%, with 1.6% growth in sales.

Ocado was again the fastest-growing grocer, with sales up 13.5% year on year, while Waitrose saw sales fall 0.9%.

Head of retail and consumer insight at Kantar, Fraser McKevitt said: “It’s never too early to start thinking about Christmas, particularly for grocery retailers.

“With many supermarkets already unveiling their festive advertising campaigns, the starting gun has been fired on the race to be Christmas number one.

“It should come as no surprise to see the grocers jostling for position early – with the average household expected to spend more than £380 on groceries during December. In total, shoppers will spend nearly £11bn in that month alone, showing how it’s a crucial period for retailers.”