Big grocers Tesco and Sainsbury's showed their strength in January, while some listed rivals saw sales growth slow in the new year, as price inflation eased to its lowest in nine months.
Grocery price inflation rose 4.0% in January, down from 4.3% in December and 4.7% in October and November, to a level not seen since April last year, as supermarkets ramped up promotioins, according to the latest data from Worldpanel by Numerator.
Take-home sales in the four weeks to 25 January were 3.8% higher than a year earlier, matching the growth seen in December.
Faced with the financial hangover from festive spending, many consumers opted for cheaper supermarket brands. Own label products accounted for 52.2% of grocery spending in January – the highest share on record.
Spending on promotions kept up a similar pace to that seen in the festive period, up 10.9% year on year, marking the fastest rate of growth since late 2024, while full price sales edged up 1.7%.
“While grocery sales continue to grow and inflation eased to its lowest level in months, value remained front of mind for many,” said Fraser McKevitt at Worldpanel. “Own label hitting a record high shows how shoppers are adapting.”
Ocado and M&S see growth slow, Tesco and Sainsbury's solid
Ocado Retail, the online joint venture between Ocado Group PLC and Marks and Spencer Group PLC, posted the strongest overall growth, with sales up 14.1% in the 12 weeks to 25 January. While slightly down from 15% in December and 15.8% in November, it continues to gain share, now holding 2.1% of the market.
Tesco PLC increased sales by 4.4% in January, broadly stable with 4.3% in December and 4.7% in November. The UK’s biggest supermarket now holds 28.7% of the market, its highest share since March 2015.
J Sainsbury PLC delivered 5.3% growth, up marginally from 5.2% in December and 5.1% in November. Market share edged up to 16.2%.
M&S grocery sales growth softened to 6.9% from 7.2% in December and 8.9% in November, but still ahead of the wider market.
Marks' shares were enjoying more demand on Tuesday, however, up 2.3%, with Ocado's up 1%, compared to flat trading for Tesco and a gain of 0.6% for Sainsbury.
Aldi’s growth eased to 3.8% from 3.9% in December and 4.1% in November, but its share held steady at 10.1%. Lidl was once again the fastest-growing physical retailer, with sales up over 10% over the 12 weeks, maintaining its run of double-digit growth and seeing its market share climb to 7.7%.
Morrisons increased sales by 2.5%, a slight improvement on recent performance but still lagging rivals. Its market share now stands at 8.4%.
Asda's share remained unchanged at 11.5%. While no exact figure was given for January sales growth, recent performance has been broadly flat. In December, its share rose from 11.4%, suggesting modest gains, while November’s share was also 11.5%.