Market Analysis

In the latest report from market researcher NIQ, it was revealed that Ocado, Lidl, and Marks & Spencer experienced the most significant growth among British grocers in the last quarter. Ocado saw a 12.0% increase in sales, followed closely by Lidl with a 9.5% rise and Marks & Spencer with a 9.3% uptick. These increases also translated into a slight expansion of their market shares.

The top players, Tesco and Sainsbury's, also saw growth, with Tesco's sales up by 5.8% and Sainsbury's by 6.6%. Asda, however, experienced a decline of 0.9% in sales, continuing its trend as the slower performer among the top competitors.

Aldi's sales growth slowed to 1.3%, while Morrisons saw a 4.4% increase, positioning them as the fourth and fifth largest players, respectively.

In the four weeks leading up to April 20, total sales growth across UK supermarkets slowed to 3.4%. This deceleration was attributed to factors such as a decrease in inflation, an earlier Easter period, and a decline in general merchandise sales.

Food inflation also showed a downward trend for the twelfth consecutive month, dropping to 3.4% from 3.7%, particularly affecting products like butter, fish, and fruits, which experienced price reductions.

The data indicated that spending on promotions increased to 25.3% during the four-week period, up from 24% in the previous month. Mike Watkins, NIQ’s UK head of retailer and business insight, noted that consumers are actively seeking the best offers, but there are uncertainties regarding spending in other sectors like fashion, technology, and home goods. He suggested that an increase in disposable income may lead to a rise in spending on holidays and leisure activities.

Paraphrasing text from "Reuters" all rights reserved by the original author.