Supermarket sales growth slows, but discounters grab largest share in two years
Published: 05:25 02 Apr 2025 EDT
UK supermarket sales growth slowed last month while discounters grabbed their highest market share in two years, according to NielsenIQ data, attributed to caution among consumers in light of higher household bills and a rise in food inflation.
Total till sales growth was 2.7% in the last four weeks, down from 4% rise seen in the previous month.
This echoes a similar report from Kantar the day before, which showed 1.8% four-week growth, compared to 3.6% in February.
NIQ found that in-store visits were up 6.8%, but online sales growth was 0.7%.
As well as consumer caution and inflation, the later timing of Easter this year and Mother’s Day falling on the last Sunday of March were also cited as factors.
Mike Watkins, head of retailer and business insight at NIQ, said: “Shopping behaviour continues to evolve, with consumers increasingly shopping around for the best prices and offers while looking to stretch budgets ahead of planned rises to essential bills at the start of April.”
Discounters were responsible for 18.1% of sales in the first quarter, the highest in two years, NIQ said, with Aldi sales up 5.4% over the 12 weeks to 22 March, for a 10.5% market share, while Lidl sales grew 9.1% for a 7.6% share.
Tesco PLC (LSE:TSCO) saw a 5% increase in sales, while for J Sainsbury PLC (LSE:SBRY) sales were up 4.5%.
Asda's fell 5% and Morrisons sales inched up 0.4%.
Ocado Retail, the online joint venture between Ocado Group PLC (LSE:OCDO) and Marks and Spencer Group PLC (LSE:MKS), saw sales spike 17.1%.
