Supermarkets sales surge as food inflation hits three-year high
As food inflation hit its highest level in four years, Tesco and Sainsbury's enjoyed the strongest sales growth of the big four supermarkets in recent weeks, though the quartet continued to lose market share to discounters.
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Shoppers are expected to fill their trollies with a record £1.5bn of groceries on the Friday and Saturday before Christmas day, Kantar Worldpanel forecast on Tuesday.
Supermarket sales in the past 12 weeks increased 3.1% increased year on year, Kantar also revealed, helped by like-for-like grocery inflation rising to 3.6% – it’s highest level since 2013.
Among the four largest operators, Tescos lifted sales 2.5% but saw its market share falling by 0.1 percentage points to 28.2%.
Sainsburys sales were 2.0% higher in the period, though its market share falling to 16.3% from 16.5%.
Asda generated a 1.2% increase in sales but saw its market share shrink by three points to 15.0%, while Morrisons till receipts were up 1.4% and its share down two points to 10.6%.
Aldi was the fastest growing grocer over the 12 weeks, ramping up sales by 15.1% to fellow German discount Lidl's 14.5%.
The limited assortment discounters saw their market shares surge ever higher, with Aldi's now at 6.9% to Lidl's 5.1%, up from 6.2% and 4.6% respectively.
Ocado held on to market share at 1.3% thanks to solid 5.2% gain in the 12 weeks.
Co-op was the worse performer among the major retailers as the only one to see sales fall, down 1.5% in the period as it market share contracted to 6.0% from 6.3%.
“Despite higher prices the British public is well into the swing of festive shopping," said Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel.
With alcohol sales up by nearly £172m compared to this time last year, McKevitt noted that volume sales had increased but the impressive growth is mainly a result of consumers choosing more expensive festive tipples.
"Gin, whisky and sparkling wine all saw significant growth: up by 26%, 10% and 7% respectively as shoppers pushed the boat out. Still small but growing rapidly, non-alcoholic beer is the new kid on the block this Christmas – growing sales by 27% during the past 12 weeks.”