Take-home grocery sales over the same period increased by 9.1% compared to last year. According to Tom Steel, strategic insight director at Kantar, grocery price inflation remains high, but there is a positive trend of it starting to decline. This is a relief for shoppers, especially with staple food prices now beginning to drop. For example, the average price of a 250g pack of butter is now 16 pence less than it was 12 months ago.
To counter the impact of inflation, supermarkets are exploring various methods to deliver value at the checkout. While the focus has been on everyday low prices, retailers are now reintroducing promotional offers. Spending on promotions accounted for over a quarter (26.5%) of all sales in the latest 12-week period, the highest level since June 2022. Tesco, the largest supermarket in the country, experienced a 9.2% sales increase during this period and saw its market share rise by 0.4 percentage points to 27.4%. In addition, branded promotions recorded their highest growth rate since January this year, boosting overall sales by 7.3% and narrowing the gap with own-label lines, which grew by 10.1%.
This September, people were able to enjoy their summer favorites for a little longer due to it being the joint warmest on record. Consequently, sales of ice cream, burgers, and dips experienced significant growth at 27%, 19%, and 10%, respectively. Furthermore, increased outdoor activities in the autumn heat led to a doubling in sales of sun care products.
While the warmer weather extended the feeling of summer, it also delayed thoughts of Christmas for many shoppers. As a result, volume sales of Christmas puddings and seasonal biscuits were down by 14% and 29%, respectively, compared to the same time last year.
Lidl emerged as the fastest-growing retailer this month, with sales up by 15.2%. This is the first time since April 2023 that Lidl has led the pack in terms of growth, resulting in a 0.5 percentage point increase in market share year on year. Fellow discounter Aldi also experienced strong sales growth, with a 14.9% increase and a total market share of 9.9%, up 0.6 percentage points from last year.
Sainsbury’s expanded its market share to 14.8%, fueled by a 9.1% sales increase from last year. Asda and Morrisons currently hold 13.7% and 8.6% of the market, respectively.
In other news, there are reports of Waitrose potentially partnering with Amazon for grocery delivery services. This speculation comes as total online trips increased by 3.1% year-on-year, the first growth since December 2021. Waitrose currently holds a 4.6% market share and has experienced sales growth of 5.3% in the latest period.
Co-op holds a market share of 6.1%, with sales rising by 3.3%. Iceland’s sales also increased by 2.8%, while Ocado experienced a 9.6% sales growth, giving them a 1.7% market share. Symbols and independents also witnessed a 2.1% growth, totaling a 1.5% market share.
