Ocado has once again cemented its position as the fastest-growing retailer in the UK grocery sector, achieving a record market share of 2.2%. The online grocer saw its sales surge by an impressive 15.8% in the 12 weeks leading up to November 30th, according to the latest data from Worldpanel by Numerator.
Key Takeaways
- Ocado leads the market with 15.8% sales growth and a 2.2% market share.
- Lidl continues its strong performance with 10.2% sales growth and an 8.1% market share.
- Tesco remains the largest grocer, holding 28.3% of the market.
- Asda and Co-op experienced sales declines.
- Grocery inflation remains stable at 4.7%.
Retailer Performance Breakdown
In a competitive landscape, Ocado’s significant sales increase highlights the growing consumer preference for online grocery shopping. Following closely is discounter Lidl, which has maintained a robust growth trajectory for the ninth consecutive month, reporting a 10.2% rise in sales and securing an 8.1% market share.
Established players Tesco and Sainsbury’s also saw positive sales growth, with increases of 4.7% and 5.1% respectively. Tesco continues to dominate as Britain’s largest grocer, commanding a substantial 28.3% of the market, while Sainsbury’s holds a 16% share.
Meanwhile, Aldi’s sales grew by 4.1%, though its market share remained steady at 10.5%. Waitrose and Iceland both experienced a 4% sales increase, with their market shares holding firm at 4.4% and 2.3% respectively.
Conversely, Asda and Co-op faced sales decreases of 4.3% and 1.4% respectively. Asda now holds an 11.5% market share, and Co-op accounts for 5.3%. Morrisons saw a modest sales increase of 2.1%, holding a 8.3% market share.
Festive Season Outlook and Consumer Spending
Fraser McKevitt, head of retail and consumer insight at Worldpanel, commented on the current retail environment, noting that "Retailers are pulling out all the stops to win shoppers over as they gear up for one of the most important trading periods of the year." With the ongoing cost of living pressures, promotions are playing a crucial role, with nearly one-third of all spending occurring on promotional items as supermarkets strive to mitigate the impact of price rises for consumers.
Data also indicates that grocery inflation has stabilised, remaining flat at 4.7% for the month ending November 30th. Take-home sales saw a 3.4% increase during the same period. The upcoming Christmas period is anticipated to be a significant one for sales, with projections suggesting spending could exceed £13.6 billion in December. Notably, spending on promoted items is expected to be higher than last November, reaching 31.2%.
Sources
- Ocado remains fastest-growing retailer – Retail Gazette, Retail Gazette.
