With the holiday season approaching, Asda experienced a downturn in sales, marking a notable exception in the UK supermarket sector.
- Asda’s market share decreased by 1.1 percentage points, dropping to 12.1%, as sales fell by 4.2% over a 12-week period.
- Contrastingly, Ocado saw a 16.2% surge in sales, increasing its market share by 0.2 percentage points to 1.8%.
- M&S reported a significant 10.6% increase in sales, boosting its market presence to 3.7%.
- The wider market is expected to exceed £13bn in sales, driven by demand for premium product lines.
In the weeks leading up to the critical Christmas period, Asda emerged as the only major UK supermarket to witness a decline in sales. Data provided by NIQ highlights a 4.2% drop in Asda’s sales over a span of 12 weeks ending on 30 November, resulting in a reduction in market share by 1.1 percentage points, bringing it down to 12.1%.
Conversely, Ocado presented a contrasting picture, sustaining its position as the UK’s fastest-growing retailer. Its sales escalated by an impressive 16.2%, consequently elevating its market share by 0.2 percentage points, peaking at 1.8%.
Similarly, M&S entered the bustling trading period with strong momentum, registering a 10.6% growth in sales. This performance translated into an increased market share, which rose by 0.2 percentage points to 3.7%.
Despite this upward trend for some retailers, Waitrose’s market share experienced stagnation. Though there was a sales rise of 1.9% over the same timeframe, the increase was inadequate to enhance its hold on the market.
Significantly, the overall grocery market is projected to surpass £13bn in December alone, largely attributable to a growing consumer preference for premium own-label products. This trend has seen spending on such items rise and is anticipated to reach nearly 7% by the year’s end.
Overall, Asda’s sales performance contrasts sharply with trends seen across other UK supermarkets, where sales growth remains largely positive.
