Tesco and Sainsbury’s have shown strong performance amidst a slowdown in grocery inflation.
- From 26.9% a year ago, Tesco’s market share increased to 27% while Sainsbury’s held steady at 14.8%.
- Aldi emerged as the fastest growing retailer, marking a sales increase of 21.2% year-on-year.
- Overall take-home grocery sales exhibited a growth of 6.5%, albeit lower compared to the previous month’s 10.4%.
- A decline in footfall, with 320,000 fewer supermarket trips, was attributed to unfavourable weather conditions.
Tesco and Sainsbury’s have demonstrated commendable growth against a backdrop of decelerating grocery price inflation, which dropped by 2.2% to 12.7% in the period leading to 6 August 2023. This performance stands out amidst a generally challenging retail market environment.
The market share of Tesco increased slightly from 26.9% to 27%, while Sainsbury’s maintained a steady share of 14.8%. This growth was driven by respective sales boosts of 9.5% and 9.3% over the 12 weeks leading to 6 August.
Aldi continued to establish itself as the fastest growing retailer for the fourth consecutive month, realising an impressive 21.2% sales surge compared to the previous year, which increased its market share to 10.2%.
According to data from Kantar, overall take-home grocery sales were up by 6.5% over the same period, a decrease from the preceding month’s increase of 10.4%. Meanwhile, prices for staple goods like milk and sunflower oil have begun to decline, offering some relief to consumers.
Fraser McKevitt, head of retail and consumer insight at Kantar, noted that despite the easing inflation, footfall in physical supermarkets fell, driven by cooler temperatures and wetter conditions, resulting in 320,000 fewer shopping trips compared to the previous year.
The retail performance of Tesco and Sainsbury’s, amidst slowing grocery inflation, presents a testament to strategic market positioning and resilience.
