Tesco is Britain’s most popular supermarket, surpassing its main rivals in the Christmas season.
Kantar, a market researcher, stated that Tesco’s grocery sales in the twelve weeks ending December 26th fell by 0.9% compared to the same time period in 2020. However, on a 2-year basis, its sales increased 10.1% and its market share rose by 0.6 percent to 27.39%.
Tesco’s full-year earnings outlook was raised in October by analysts. Some analysts think it will increase its outlook when it releases a trading update on January 13.
Market share: Tesco, Britain’s biggest supermarket group, outperformed its major rivals during the key Christmas period, achieving its highest grocery market share since January 2018
Sainsbury’s and Asda, Tesco’s main rivals, saw sales drop by 4.4%, 3.9% and 6.5% respectively in the 12 week period, as compared to 2020.
On a store-by-store basis, all major grocery businesses failed to increase sales during the 12-week period to Boxing Day compared with a year ago – when restrictions were in place that saw the hospitality sector and non-essential retailers closed.
Aldi was the best on a sales basis with flat sales followed closely by Lidl, which experienced a 0.3% drop in sales; however, both companies saw their market share decline.
Co-op fell 6.6% and Morrisons and Iceland dropped 6.6% respectively. But all three had increased their market share.
Online operator Ocado was the only grocer to grow its sales year-on-year, likely benefiting from progress on its joint venture with Marks & Spencer.
Russ Mould (investment director at AJ Bell) said that he should determine how it translates to financial performance once the supermarkets begin updating the market.
Total UK grocery sales came in at £31.7billion over the crucial 12-week period, While levels in 2020 were down by 3 percent, they are up by 8 percent from 2019 levels.
Sales hit £11.7 billion in December, down just 0.2 per cent on the record-breaking same month a year ago when strict restrictions were in place.
Sales: Ocado was the only grocer to grow its sales year-on-year, likely benefiting from progress on its joint venture with Marks & Spencer
Kantar’s chief of retail and consumer insights, Fraser McKevitt stated: “The data suggest that, while there weren’t formal Covid-19 laws in place across the UK for this year, many people were able to celebrate at home because Omicron.
Sales of mince pies across all supermarkets hit £62million, up 7 per cent on 2020, and £61million was spent on Christmas chocolates, representing a 21 per cent increase on the year before.
All that food management also resulted in an 8 percent jump in the sale of indigestion treatments.
Kantar said that some traditional products were being discarded, but sprout sales fell 3 percent.
Also, there was a shift to more vegetarian Christmases. Sales of chilled vegetarian products increased by 6 percent and those with frozen counterparts increased 4 percent.
Tasty: Britons splashed out £62m on mince pies at supermarkets over the festive period
Still wine and sparkling sales rose by 22 percent and 18 percent, respectively. Meanwhile sales of crisps increased by 31 percentage.
Premium own-label sales broke records this Christmas with shoppers spending £627million on supermarkets’ own upmarket lines over the month to 26 December, marking an increase of 6.8 per cent on 2020 levels.
Mr McKevitt said: ‘Tesco’s Finest and Sainsbury’s Taste the Difference are easily the largest premium own-label ranges, but we saw the fastest growth from other ranges such as Asda Extra Special and Iceland Luxury.’
Kantar said grocery price inflation reached 3.5 per cent in December, its highest level since spring 2020, adding nearly £15 to shoppers’ average monthly grocery bills.
According to the study, prices rose fastest in fresh beef markets, as well as savoury snacks, skin care, and fell in bath and shower products, fresh bacon and spirits.
Bank of England raised its inflation forecast for April to reflect the prediction that consumer price inflation will peak in April at an all-time high of around 6%, which is a new record.
Despite Omicron’s popularity, Omicron was still very popular. In-store shopping saw the highest number of visits to stores since December before the pandemic.
Mr McKevitt said: ‘Shoppers clearly trusted that supermarket shelves would remain well stocked and they didn’t feel the need to rush out much earlier to get their favourite festive treats.’
Comparable to December 2020’s levels, online sales declined by 3.7% in December. However, 12.2% of all sales came from the internet.