New data reveals Tesco’s market dominance reaching its peak since 2017, amid struggles faced by Asda.
- Tesco’s market share has risen to 28%, bolstered by increased sales and profitability.
- Asda continues to experience a decline in market share, now at 12.6% compared to last year’s 13.7%.
- Ocado maintains its position as the fastest-growing grocer, achieving a 10% sales increase.
- Supermarkets are strategically reducing prices in certain categories, despite rising overall grocery inflation.
In a significant development, Tesco has achieved its largest market share since 2017, according to the latest figures from Kantar. The retailer’s market share has risen to 28%, a considerable increase from 27.4% in the previous year. This improvement is underpinned by a 10% surge in half-year profits and a 4% rise in sales, reflecting Tesco’s robust performance in a competitive market environment.
Conversely, Asda’s market position continues to weaken, with its share declining to 12.6% from 13.7% last year. This decrease highlights the challenges faced by Asda amidst fierce competition in the supermarket sector.
Ocado, the online supermarket, has once again emerged as the fastest-growing grocer, marking the eighth consecutive month of this achievement. Sales have increased by 10%, leading to a slight rise in its market share to 1.8%. Such a trend underscores Ocado’s growing influence in the grocery market.
Despite an increase in grocery price inflation to 2% in the four weeks leading up to 29 September, some prices are reportedly falling, as highlighted by Kantar’s head of retail and consumer insight, Fraser McKevitt. He pointed out that the average price of essential items such as toilet and kitchen roll, along with dog and cat food, has seen a year-on-year decrease of 6%, 4%, and 3% respectively.
Retailers are anticipating a boost in sales from the upcoming Halloween festivities, with a notable increase in demand for seasonal products. Sales of pumpkins have nearly doubled compared to last September, reaching close to £1 million in the recent four-week period. Confectionery sales have also seen a 9% increase, with expectations of further growth as Halloween approaches.
These insights depict a dynamic supermarket landscape, with Tesco reinforcing its strength while competitors navigate challenging market conditions.
