º£½ÇÊÓƵ supermarket sales outpaced inflation in February as consumers sought budget-friendly indulgences.
According to Kantar, take-home sales from grocers increased by 3.6 per cent in the four weeks leading up to 23 February, while prices saw a 3.3 per cent rise, as reported by .
However, this overall figure conceals a disparity among the º£½ÇÊÓƵ's leading supermarkets. Asda witnessed a decline in sales, whereas Tesco and Sainsbury's managed to expand their market share.
Grocery prices have been on an upward trajectory since August last year, but the growth rate is significantly lower than the double-digit figures observed during the cost-of-living crisis. Despite this, sales continue to lag behind inflation.
Kantar reported that food inflation remained unchanged month-on-month. Prices are escalating most rapidly in sectors such as chocolate confectionery, juices and butters, while they're dropping fastest in cat and dog food, laundry and household paper products.
Spending on deals experienced another surge in February, with purchases made on offers now representing 27.6 per cent of sales, a 0.3 percentage point increase compared to last year.
Sally Ball, Kantar's head of retail, commented on the trend: "[One of the big headlines of the past few years has been consumers' hunt for value," She added, "You might think that people would shop around more to find the best deals but in fact, that's not the case. Households visited just under five different grocers this month, the lowest level in February since 2021.
"The growth of supermarket loyalty schemes is partly behind this as shoppers use them to unlock exclusive discounts."
Asda's sales continue to decline, with revenues totalling £4.6bn in the 12 weeks leading up to 23 February, marking a five per cent decrease year on year. The TDR-owned chain remains the only major grocery retailer to have lost market share over the past year.
Asda has been tackling challenges such as competition from discounters Lidl and Aldi, substantial debt, strike actions, and costly separation from its former owner's IT infrastructure.
Tesco has maintained its status as the º£½ÇÊÓƵ's largest supermarket, capturing 28.3 per cent of the market with over £10bn in sales. Meanwhile, Sainsbury's also saw positive movement, nudging its market share from 15.5 per cent to 15.7 per cent compared to the same period last year.
Morrisons now claims 8.6 per cent of the market share.
Ocado experienced the fastest growth among retailers for the tenth month in a row, with spending surging by 9.6 per cent – holding steady with a 1.9 per cent market share. Aldi celebrated a market share of 10.3 per cent after enjoying a 4.9 per cent increase in sales – its most significant boost since January 2024.
Likewise, Lidl saw its market portion expand by 7.3 per cent.
