Kantar has released its latest supermarket share update, finding that the online shopping market had expanded 3.5% to reach a value of £3.7 billion.
Online retailer Ocado was the fastest growing grocer for the eighth month running, with its sales pushed up by 10% over the latest 12 weeks. Its market share increased to 1.8% as the overall online market expanded by 3.5% over the 12 weeks to reach £3.7 billion, with 22.1% of households shopping online.
Tesco reached its largest market share since December 2017, taking 28% of the market up from 27.4% a year earlier. Asda held 12.6% of the market while Sainsbury’s sales increased by 5.1% to hit a 15.2% market share.
Discounter Lidl achieved a market share of 8.1% after spending climbed by 8.8%, while Aldi, now Britain’s fourth biggest retailer, accounted for 9.8% of spending.
Morrisons made up 8.6% of the market, as both Waitrose and Iceland’s market share held steady at 4.6% and 2.2% respectively. Co-op had a 5.9% share.
Supermarkets cut prices to create value
Kantar said that prices of chocolate confectionary were rising fastest, while pet food prices were falling fastest. Grocery price inflation increased to 2% up from 1.7%, and spending on promoted items continued to rise.
Sales of full price items rose by 0.3%, and retailers “rolled back” pricing on essentials to attract shoppers.
Fraser McKevitt, head of retail and consumer insight at Kantar, explained: “In the fiercely competitive retail sector, the battle for value is on. Supermarkets are doing what they can to keep costs down for consumers and thanks to their efforts the prices in some categories are falling.”
Consumer decision making influenced by seasonal events
With spending still stretched, Kantar said people were having to make decisions about what they could afford, with more consumers reporting that they are struggling to balance environmental concerns with their own financial worries. It said 59% of Britons now say they’re finding it harder to act sustainably, up from 44% last year.
Record rainfall impacted shopper decision making. McKevitt continued: “The unusually wet weather this September had the nation rushing for those classic warming staples. Hot chocolate sales surged by 28%, soup by 10% and home baking by 7% as people looked to stave off the autumn blues.”
As Halloween approaches, Kantar highlighted the increase in confectionary sales. McKevitt added: “Pumpkins are flying off the shelves, with sales nearly doubling last September’s figures, at just under £1 million over the last four weeks. Sugar confectionery has also seen a 9% lift, and spending is expected to ramp up further this month as trick or treating approaches – confectionery sales were 16% higher in the second half of October last year.”
