Supermarket sales jump 3.3% as inflation continues to fall

Overall take-home grocery sales rose by 3.3% over the four weeks to 14 April as grocery price inflation also continued to fall to 3.2%, according to the latest data from Kantar.

Kantar said the decline has been aided by a significant increase in promotional spending, with items bought on offer making up 29.3% of supermarket sales – the highest level outside of Christmas since June 2021.

An early Easter didn’t dent seasonal sales, as spending on confectionery topped £100m for the first time ever in the seven days up to and including Easter Sunday.

With the Easter celebrations over, both shoppers and retailers will now be looking ahead to the two bank holidays in May. Excluding the Coronation, the weeks before the two standard long weekends in May 2023 saw an average increase in sales of £82m, representing a 3% uplift in spend.

Ocado was again the fastest growing grocer this month, improving sales by 12.5% in the 12 weeks to 14 April, ahead of the total online market which grew by 6.8%. The retailer accounted for 1.9% of take-home grocery sales, up from the 1.7% it held a year ago. Meanwhile, total online sales reached a share of 12.0% for the first time since July 2022.

Britain’s two largest grocers, Tesco and Sainsbury’s, both gained 0.4 percentage points of share in the latest 12 weeks, holding 27.4% and 15.3% of the market respectively. Sainsbury’s saw sales increase by 6.8% and Tesco by 5.9%.

Lidl achieved a record 8.0% share of the market, also up by 0.4 percentage points versus a year ago, fuelled by sales growth of 9.1%. Fellow discounter Aldi reclaimed the 10.0% market share it last held in September 2023, increasing sales by 2.8%.

Finally, Morrisons held its portion of the market flat at 8.7%, the best share performance for the retailer since 2021, with spending through its tills up by 3.8%. Waitrose and Iceland also retained their market share positions at 4.5% and 2.2% respectively. Both retailers saw sales growth of 3.7%. Asda now holds 13.4% of the market, while Co-op accounts for 5.4%.

Fraser McKevitt, head of retail and consumer insight at Worldpanel by Kantar, said: “We’ve been monitoring steady annual growth in promotions over the past 11 months as retailers respond to consumers’ desire for value. Deals helped shoppers save a massive £1.3 billion in the latest four weeks, almost £46 per household. This emphasis on offers, coupled with falling prices in some categories like toilet tissues, butter and milk, has helped to bring the rate of grocery inflation down for shoppers at the till.”