Tesco has achieved its largest market share in seven years, reaching 28% as of 2024.
- The supermarket giant reported a 10% rise in half-year profits alongside a 4% increase in sales.
- Despite its success, Asda’s market share has declined to 12.6%, down from 13.7% last year.
- Ocado continues to be the fastest-growing online grocer, with a 10% sales increase.
- Grocery price inflation rose to 2% in September, with notable discounts on select items.
In a clear testament to its strategic acumen, Tesco has expanded its market share to 28%, marking its most significant foothold since 2017. This accomplishment is underscored by a 10% increase in half-year profits and a 4% rise in sales. The data, sourced from Kantar, reflects Tesco’s adept navigation of the competitive retail sector, leveraging consumer loyalty and operational efficiency.
Sainsbury’s has also observed growth, with sales up by 5.1%. Its market share has marginally increased by 0.4 percentage points, now capturing 15.2% of the market. This development positions Sainsbury’s as a notable contender in the ongoing supermarket competition.
Conversely, Asda has experienced a notable decline in market share, now standing at 12.6%, a decrease from 13.7% during the same period last year. This downturn suggests the challenges faced by Asda in maintaining consumer engagement amidst intensified market competition.
Ocado emerges as the fastest-growing online supermarket, enjoying a substantial 10% increase in sales, resulting in a market share increment of 0.1 percentage points to 1.8%. This demonstrates Ocado’s robust online retail strategy and growing consumer base, sustaining its growth trajectory for the eighth consecutive month.
Grocery price inflation has slightly increased to 2% in September from 1.7% in the previous month. Nevertheless, Kantar’s head of retail and consumer insight, Fraser McKevitt, notes a decline in prices for essential items, highlighting a 6% reduction in costs for toilet and kitchen roll, and a 4% and 3% decrease for dog and cat food respectively. McKevitt also anticipates increased retail activity surrounding Halloween, with significant growth in pumpkin and confectionery sales as consumers prepare early for the festivities.
Overall, the dynamics of the supermarket industry continue to evolve as leading retailers adapt to consumer demands and economic pressures.
