Tesco PLC (OTC:TSCDY) (LSE:TSCO) has achieved its highest grocery market share since December 2017 according to the latest supermarket trends survey from market researcher Kantar.
Britain’s largest grocer grew its share to 28.1%, up from 27.4% a year ago as sales grew by 5.2% in the 12 weeks to 1 December 2024.
Number two Sainsbury’s share increased by 0.3 percentage points to 15.9% with its sales 4.7% higher than last year.
The UK’s two biggest grocers now have a combined market share of 44%, said Kantar.
Online retailer Ocado (LON:OCDO) was the fastest-growing retailer, boosting sales by 8.7% over the period and achieving a 1.8% share of the market.
That compared to the total online market which grew by 3.6%, with shoppers spending £4.2 billion on the channel overall across the 12 weeks.
Lidl was the fastest growing bricks-and-mortar grocer, with sales up by 6.6% with market share rising by 0.3 percentage points to 7.7%.
Elsewhere, spending at Morrisons rose by 2.0%, giving it 8.6% of the market. Waitrose, at 2.6% grew slightly ahead of the market, while Aldi grew by 2.1%.
Asda was again the big loser seeing its sales drop by 5.6% year-on-year and its market share dwindle to 12.3% against 13.4% a year ago. Co-op also saw sales fall, by 1.1% in its case.
M&S is not in the table due to its non-food business but Kantar gave it a special mention due to its growth and as it is the run-up to Christmas.
Fraser McKevitt, Kantar’s head of retail and consumer insight, added: “The number of different retailers we visit in the run-up to Christmas is higher than at other times during the year, including wider high street brands like M&S.
"Just under one in three households, at 32%, bought food, drink and other groceries to have at home from M&S during the 12 weeks to 1 December and looking at grocery sales alone, spending at M&S rose by 10.4%.”
Ahead of Christmas, Kantar said it expects grocery sales to exceed £13 billion over the four weeks of December for the first time ever with Monday 23rd December likely to be the single busiest day for the supermarkets this year.
Spending on non-grocery items in the supermarkets leapt by 21% in December 2023 versus the monthly average for that year.
Wider grocery price inflation remains relatively stable at 2.6%, noted Kantar, with grocers prioritising low pricing over multibuys though the cost of an average Christmas dinner for four has risen to £32.57, up by 6.5%, largely driven by the price of turkey and Christmas vegetable staples.
Shares in Tesco (LON:TSCO) rose 1% to 368.7p, Sainsbury’s by 0.3% to 270.4p and M&S was flat at 390.5p.