Tesco Hits 7-Year High in Market Share as Asda Faces Ongoing Challenges

Tesco has reached its highest supermarket market share since 2017, climbing to 28%, up from 27.4% last year, according to recent data from Kantar. This notable achievement, highlighted in Tesco Hits 7-Year High in Market Share as Asda Faces Ongoing Challenges, comes after Tesco raised its profit expectations on 3 October, following a 10% increase in half-year profit and a 4% rise in sales.

Sainsbury’s also experienced a boost, with its sales rising by 5.1%, pushing its market share up by 0.4 percentage points to 15.2% over the 12 weeks ending 29 September. However, Asda continues to face struggles, with its market share dropping from 13.7% last year to 12.6% this year.

Meanwhile, Ocado remained the fastest-growing grocer for the eighth consecutive month, as its sales surged 10%, resulting in a slight increase in its market share to 1.8%.

Grocery price inflation rose to 2% during the four weeks leading up to 29 September, compared to 1.7% the previous month. Despite this, Kantar’s head of retail and consumer insight, Fraser McKevitt, pointed out that some prices are actually falling. For instance, the cost of toilet and kitchen rolls is 6% lower year-on-year, while dog and cat food prices have dropped by 4% and 3%, respectively.

McKevitt also noted that Halloween is expected to boost sales, with consumers purchasing spooky-themed items earlier this year. Pumpkin sales nearly doubled compared to last September, reaching just under £1 million over the past four weeks. Additionally, sugar confectionery sales rose by 9%, with a further increase anticipated as trick-or-treating season approaches, following a 16% rise in confectionery sales during the latter half of October last year.