Tesco has quietly regained its grip on the UK grocery market, now accounting for almost a third of all grocery sales and more than £1 in every £10 spent in British retail. Data released this week shows the supermarket chain's sales growth outpacing its traditional rivals, marking a remarkable turnaround from the accounting scandal that rocked the company in 2014.
The term 'Tescopoly' was first coined in the 2000s, when concerns about the retailer's dominance and its impact on local high streets were at their height. Tesco's expansion under Sir Terry Leahy included the acquisition of the T&S Stores convenience chain, the launch of Homeplus stores, and ventures into banking and mobile phones. By 2013, the company even attempted to take on Amazon and Apple with the Hudl tablet computer.
Today, Tesco's market share stands at 28.3%, up from a low of 26.5% in 2020, though still below its peak of nearly 32% in 2007. Its nearest competitor, Sainsbury's, trails at 15.3%. Tesco's new UK boss, Ashwin Prasad, has reportedly told suppliers the retailer aims to top 30% again.
Growth is being driven by Tesco Express convenience stores and online sales. The retailer has added 43 Express sites this year, bringing the total to 1,675, and online orders now account for 14% of sales. Tesco also operates 730 One Stop shops and supplies thousands of independent retailers through its Booker wholesaler, including Premier, Londis, and Budgens brands.
Concerns have been raised about Tesco's power over small local shops. Premier now accounts for the largest number of convenience shops in the UK, with numbers rising to 4,800 this year, while Londis and Budgens have also seen increases. Unlike in the 2000s, when online grocery shopping was niche, Tesco's dominance now extends across both physical and digital retail.
