Tesco has strengthened its position in the UK grocery market, expanding both its sales and market share, while rival Asda continues to falter amid mounting grocery inflation.
According to data from Worldpanel by Numerator, Tesco — the country’s largest supermarket — lifted its market share to 28.3% in the 12 weeks to 5 October, marking a 0.7 percentage point increase from a year earlier. The retailer also saw its sales rise by nearly 7% over the same period.
In contrast, Asda’s market share slipped 0.9 percentage points to 11.8%, with sales dropping 3.2% year-on-year. The decline comes despite a renewed push from executive chair Allan Leighton to win back customers through aggressive price cuts and improved in-store service. Just last week, the chain announced new reductions on 1,000 products, following an average price drop of 22% across more than half its range in the past year.
However, Asda’s sales have been in steady decline for more than a year, losing ground to stronger competitors such as Tesco and Sainsbury’s, as well as budget challengers Aldi and Lidl.
Tesco’s growth outperformed most of its major rivals, with the exception of Lidl, which saw a 10.8% jump in sales. The German discounter is now on the verge of overtaking Morrisons to claim the title of the UK’s fifth-largest supermarket, holding a market share of 8.2% compared with Morrisons’ 8.3%.
Fraser McKevitt, head of retail and consumer insight at Worldpanel, noted: “Households are balancing many priorities when deciding where and how to shop. With prices rising faster, cost inevitably remains a top consideration for most shoppers.”
“Spending on offers has hit its highest level since April at 29.4%, as consumers hunt for deals to ease the burden on their wallets. Promotions often jump in the run-up to the festive season so it’s likely the trend will continue as we get closer to December.”
Grocery price inflation rose to 5.2% in the four weeks ending 5 October, up from 4.9% the previous month, marking the highest level since July, according to Worldpanel.
