Britain's supermarket war winners and losers revealed as grocery bills set to rise by £275
Britain's shoppers have endured an average rise in their annual grocery bills of £275 as inflation continues to accelerate - with Lidl, Aldi and Tesco among the winners.
Families are said to be saving money by switching to simpler meals with own-brand products and fewer ingredients as grocery price inflation soared to an 18-month high.
The prices of foods such as fresh meat, chocolate, butter and spreads are now rising the fastest, although costs are falling for dog food, sweets and laundry products.
The inflation rate hit 5.2 per cent for the four weeks to July 13 - its highest since January 2024, according to Worldpanel by Numerator, formerly known as Kantar.
Revenues at many supermarkets in the UK are benefiting from the price surge with take-home sales at the grocers growing by 5.4 per cent in the four-week period.
Lidl had a strong month as it hit a record high market share of 8.3 per cent, gaining 0.5 percentage points as it attracted more than 500,000 new customers to stores.
Britain's biggest supermarket Tesco also did well as it boosted its share to 28.3 per cent as sales grew by 7.1 per cent, the fastest rate since December 2023.
Sales at Sainsbury's increased by 5.3 per cent, putting its market share at 15.1 per cent – while grocery sales at M&S were 6.5 per cent higher than a year ago.
| Grocer | 12wks to 14/7/24 (£m) | Share (%) | // | 12wks to 13/7/25 (£m) | Share (%) | // | Change YoY (%) |
|---|---|---|---|---|---|---|---|
| Total Grocers | 34,398 | 100.0% | // | 35,968 | 100.0% | // | 4.6% |
| Total Multiples | 33,920 | 98.6% | // | 35,455 | 98.6% | // | 4.5% |
| Tesco | 9,522 | 27.7% | // | 10,195 | 28.3% | // | 7.1% |
| Sainsbury's | 5,145 | 15.0% | // | 5,419 | 15.1% | // | 5.3% |
| Asda | 4,393 | 12.8% | // | 4,259 | 11.8% | // | -3.0% |
| Aldi | 3,694 | 10.7% | // | 3,927 | 10.9% | // | 6.3% |
| Morrisons | 2,980 | 8.7% | // | 3,009 | 8.4% | // | 1.0% |
| Lidl | 2,686 | 7.8% | // | 2,984 | 8.3% | // | 11.1% |
| Co-op | 1,954 | 5.7% | // | 1,881 | 5.2% | // | -3.7% |
| Waitrose | 1,512 | 4.4% | // | 1,595 | 4.4% | // | 5.5% |
| Iceland | 781 | 2.3% | // | 803 | 2.2% | // | 2.8% |
| Ocado | 630 | 1.8% | // | 704 | 2.0% | // | 11.7% |
| Other Multiples | 623 | 1.8% | // | 679 | 1.9% | // | 9.0% |
| Symbols & Independents | 478 | 1.4% | // | 513 | 1.4% | // | 7.3% |
| Source: Data from Worldpanel by Numerator (formerly Kantar) |
Sales at the UK's fourth largest grocer Aldi increased by 6.3 per cent, bringing its share to 10.9 per cent. Aldi overtook Morrisons in autumn 2022, with the latter seeing sales nudge up by just 1.0 per cent and it now holds 8.4 per cent of the market.
Ocado retained its place as the fastest growing British grocer as its sales rose by 11.7 per cent, exceeding the overall online market growth rate of 5.7 per cent.
Online accounted for 12 per cent of all sales at the grocers over the past 12 weeks, with 23 per cent of households making at least one virtual shopping trip.
But Asda saw its market share fall one percentage point from 12.8 to 11.8 per cent; while Co-op's share dropped half a percentage point from 5.7 to 5.2 per cent.
Fraser McKevitt, head of retail and consumer insight at Worldpanel, said: 'Just under two thirds of households say they are very concerned about the cost of their grocery shopping, and people are adapting their habits to avoid the full impact of price rises.
'Own label products, which are often cheaper, continue to be some of the big winners and, in fact, sales of these ranges are again outpacing brands, growing by 5.6 per cent versus 4.9 per cent.
'These inflationary worries aren't just changing what we buy, but how we prepare it too. We often see people choosing to make simpler meals when they are trying to save money, and today, almost seven in ten dinner plates include fewer than six components.'
Lidl has reached a record high market share at 8.3 per cent, gaining 0.5 percentage points
Tesco also did well as it boosted its market share to 28.3 per cent and sales grew by 7.1 per cent
Researchers added that with the average household spending £5,283 each year at the grocers, the latest grocery price inflation rise could add £275 to bills if people's shopping habits stay the same.
Mr McKevitt also pointed out that with budgets under pressure, supermarkets have been finding new ways to keep consumers spending in stores.
He said: 'Innovation is absolutely vital to help grocers keep up with new trends and make sure they're meeting shoppers' needs as behaviours and priorities shift.
'The drinks aisle in particular seems to be offering up plenty of inspiration. Iced coffee has soared in popularity in recent years and with summer temperatures rising, sales were up this month by 81 per cent.
'Kombucha drinks have also burst onto the scene, with sales more than doubling over the latest four weeks compared with 2024.'
Mr McKevitt added that no and low alcohol drinks sales continue to grow with about 7 per cent of households buying a product this month, pushing sales up by 21 per cent.
The Office for National Statistics revealed last week that Consumer Prices Index inflation rose to 3.6 per cent in June, up from 3.4 per cent in May and the highest since January 2024
The ONS also said that annual food price inflation hit the highest level since February 2024
Transport and clothing were big contributors to the increase in inflation in the year to June
Meanwhile sales of ice cream and sorbet soared by 33 per cent as temperatures soared, while champagne or sparkling wine sales increased by 9 per cent.
Mr McKevitt said: 'While not everyone is putting strawberries and cream in sandwiches just yet, Wimbledon did help get them back on shoppers' minds, with sales shooting up by 28 per cent and 16 per cent per cent respectively.'
The grocery price inflation figure is based on more than 75,000 identical products compared year on year in the proportions purchased by British shoppers.
Last week, separate data from the Office for National Statistics (ONS) revealed UK inflation rose to a near 18-month high in June as food prices surged for the third month running.
The ONS said Consumer Prices Index inflation rose to 3.6 per cent in June, up from 3.4 per cent in May and the highest since January 2024.
The increase was unexpected, with most economists forecasting inflation to remain unchanged at 3.4 per cent.
The ONS said annual food price inflation hit the highest level since February 2024, while transport costs also pushed up the cost of living, as air fares saw the largest monthly rise in price for seven years.
