Tesco has achieved its highest market since February 2022, growing 0.6 percentage points to 27.7%.
The supermarket giant bolstered its position as the UK’s largest retailer as sales jumped 4.6% year on year, according to new data from Kantar.
The figures come as Tesco said it “continued to build momentum” in its first quarter results last week, which were driven by rising food sales of 5% and coupled with growth in its premium range, Tesco Finest.
Kantar data also showed that Ocado retained its title as the fastest growing grocer for the fourth month in a row, with sales rising by 10.7% over the 12 weeks period to 9 June. This was ahead of the total online market, which only saw sales rise by 4.0%.
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Lidl also strengthened its hold of the market by 0.4 percentage points to 8.1%, as its sales also grew 8.1% over the period, while fellow discounter Aldi’s revenue edged up 0.8%, boosting its market share to 10.0%.
Elsewhere, Asda and Co-op showed a weaker performance, with sales falling by 4.0% and 2.3% respectively. Asda’s market share has plunged by almost 1 percentage point in the past year, from 13.7% to 12.8%.
Across the industry, take-home grocery sales nudged up just 1% over the four weeks to 9 June 2024, marking the slowest increase in two years as poor weather and falling inflation impacted the sector. Growth in footfall has also stalled, with the average shopper visiting a supermarket 16.3 times this month – down from 16.4 in June last year.
Kantar head of retail and consumer insight Fraser McKevitt said: “The sixth wettest spring on record hasn’t just dampened our spirits leading into summer, it’s made a mark on the grocery sector too as it seems Britons are being put off from popping to the shops. We’re not yet reaching for those typical summertime products and are making some purchases you wouldn’t expect in June. Consumers bought nearly 25% fewer suncare items this month compared with last year, while prepared salads dipped by 11%. On the other hand, warming fresh soup sales jumped by almost 24%.”
However, McKevitt said that the Euros may help bolster the sector over the next month.
“The grocers are looking to entice in consumers enjoying this year’s tournament, with the proportion of beer and lager sales on promotion leaping up to over 40% in the latest four weeks, he said.
“Retailers will be competing with fans heading out of the house to watch the football as well as with each other. Pubs especially could benefit from a boost – whether or not football comes home. Throughout the last tournament held in 2021, sales of food and non-alcoholic drinks in pubs soared by 60% compared with the average month that year.”
