The UK grocery sector is “largely buoyant” in the run up to Christmas, industry analysts TNS Worldpanel claimed this afternoon (8 December) – and consumers are showing signs of gaining in confidence.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
According to TNS data, UK grocery sales rose 4.3% in the 12 weeks to 29 November, a level of growth that was dampened by slowing food inflation, which stood at 2.8%.
However, TNS director Ed Garner said consumers were “under much less pressure to trade down” with food inflation slowing.
Garner said: “The market is seeing several signs that indicate that an end to the recessionary buying behaviour that has characterised the last year is imminent. Premium ranges – particularly Tesco Finest – are in growth, while the hard-discount sector, including Aldi, Lidl and Netto, are stagnant, with no year-on-year share growth.”
TNS data suggested that Morrisons’ share of the UK grocery market hit an all-time high of 12.1% after seeing sales rise 8.5%.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataSainsbury’s sales climbed 5.8%, giving the UK’s third-largest grocer a market share of 16.1%.
Asda sales rose 6%, taking its share to 17% – up from 16.7% year-on-year. Tesco’s market share stood still at 30.6% after seeing sales rise 4.2%.
Garner said Tesco’s static market share “may seem unremarkable” but he added: “Their aggressive promotional programme, particularly on premium ranges, might have been expected to depress share through self-imposed price deflation.”
