Tesco has increased its grip on the UK grocery market, with sales rising nearly 7% and market share climbing to 28.3% in the 12 weeks to 5 October, according to Worldpanel by Numerator. The supermarket giant's performance contrasts sharply with rival Asda, whose market share fell 0.9 percentage points to 11.8% as sales declined by 3.2%.
Asda's struggles persist despite efforts by new executive chair Allan Leighton to attract shoppers through price cuts and improved store service. The company recently announced reductions on 1,000 products, following a year of lowering prices on more than half its range by an average of 22%. However, it continues to lose ground to Tesco, Sainsbury's, and discounters Aldi and Lidl.
Lidl recorded the strongest sales growth among major grocers at 10.8%, edging closer to overtaking Morrisons as the UK's fifth-largest grocer. Lidl now holds an 8.2% market share, just behind Morrisons' 8.3%. Meanwhile, grocery price inflation accelerated to 5.2% in the four weeks to 5 October, up from 4.9% the previous month, marking the highest level since July.
Fraser McKevitt, head of retail and consumer insight at Worldpanel, noted that households are prioritising cost amid rising prices, with spending on promotions reaching 29.4% – the highest since April. He expects this trend to continue as the festive season approaches. Prices are rising fastest on chocolate, fresh meat, and coffee, while toilet paper, sugary sweets, and sparkling wine have become cheaper.
Marks & Spencer also performed well, with grocery sales up 7.7% over the 12 weeks, recovering from a recent cyber-attack. The retailer announced it is extending the contract of chair Archie Norman for three years beyond September 2026, citing unanimous board support. Online grocery shopping is also on the rise, with sales up 12% year-on-year, accounting for 12.7% of total sales – the highest share since March 2022. More than one in five UK households shopped for groceries online in September, returning to popularity seen during the pandemic.
