Tag: Ocado sales growth

  • Record £14.6bn UK Grocery Sales Driven by Intense Discounts and Promotions

    Record £14.6bn UK Grocery Sales Driven by Intense Discounts and Promotions

    UK grocery sales reached a record £14.6bn, driven by promotional activity and discounts in the FMCG sector. NielsenIQ data shows that more than 25% of all FMCG sales were made on promotion, with major retailers like Tesco and Sainsbury’s leading the way with significant promotional spending.

    Although overall supermarket sales growth slowed, food sales were the primary driver of the increase. Promotions accounted for 37% of sales at major supermarkets, contributing to Tesco and Sainsbury’s market share growth. Tesco experienced a 4.5% increase in market share, while Sainsbury’s saw a 3.1% rise. Both retailers saw higher foot traffic and a growth in new shoppers.

    Other retailers like Ocado, Aldi, and Lidl also performed well. Ocado led with a 13.9% increase in sales, while Aldi and Lidl achieved a combined market share of 16.3%, up from 15.8%. Aldi recorded its best Christmas ever, generating £1.6bn in sales, while Lidl saw a 7% sales increase, with £1bn turnover.

    The rise in grocery sales is attributed to discounts, sales promotions, and the return of low inflation, making food and household shopping more affordable for consumers. The average basket value decreased by 4.9% to £21.95. Despite a drop in sales for certain items like beers and spirits, fresh produce saw a 7.4% increase, while confectionery sales rose 13%.

    In the coming year, shoppers are expected to continue looking for the best deals, with an increasing focus on smart shopping to balance household bills with discretionary spending. This report underscores the impact of promotions and discount strategies in driving sales in the competitive grocery sector. Retailers must continue to emphasize smart pricing and promotional activities to maintain customer loyalty and market share.