GROWTH in grocery has hit its highest level for 18 months as supermarkets continue to enjoy increases in volume sales.
The latest figures from Nielsen showed the UK’s leading supermarkets enjoyed their highest year-on-year growth rate for 18 months during the four weeks to 24 February, with a total increase of 0.8%, the highest figure recorded since August 2016.
Tesco was the strongest performer of the big four with a year-on-year improvement of 3.1%, closely followed by Asda, which was up 2.9%. Sainsbury’s and Morrisons posted growth figures of 0.8% and 2% respectively.
The discounters continue to massively outperform the rest of the market in growth terms, with Aldi up 13% year-on-year and Lidl up 14.8%, while Iceland was the best of the rest with a year-on-year increase of 3.8%.
Mike Watkins, UK head of retailer insight at Nielsen, said: “In contrast to non-food retailers, which are seeing weaker consumer demand than a year ago, grocery retailing continues to look positive.
“Much of the credit goes to the grocery retailers who’ve not passed on too much of the increased supply chain costs.
“As a result, consumers don’t feel the need to hold back on grocery shopping.”
Figures from Kantar Worldpanel paint a similar growth picture, with each of the big four retailers seeing positive growth.
Morrisons in particular had something to celebrate as the firm entered its 16th consecutive period of growth according to Kantar, which found the supermarket’s sales up 2.7% year-on-year for the 12 weeks to 25 February 2018.
Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel said: “Despite a slight fall in market share of 0.1%, Tesco experienced particularly strong growth from its Extra superstores.
“The varied selection of groceries on offer at these larger stores has encouraged customers to return to fuller trolley shops, with average baskets worth £31.09.”
