Sainsbury takes larger market share, UK grocery inflation sees new spike

Sainsbury’s was a standout name amongst British supermarkets on Tuesday, gaining market share – but, most headlines around the sector centred on a new spike in prices.

Grocery price inflation rose for the first time in 17 months, increasing by 1.8%, over the four weeks to August 4, 2024.

The increase in grocery prices was primarily driven by the rising costs of vitamins, minerals, fruit juices, and chocolate, according to retail market researcher Kantar.

At the same time, the UEFA Euro 24 football and the Olympics were said to be factors in a surge of spending on alcohol and snacks.

An estimated £10 million was spent on beer across the counter in the UK on the weekend of the Euros final, Kantar noted, meanwhile, Wine sales also rose by 35% on the day of the Olympics opening ceremony.

Over at Sainsbury’s, the UK’s second largest supermarket – behind Tesco (LSE:TSCO) saw its largest market share gain since 1997, increasing from 14.8% to 15.3%.

Its in stark contrasts with third-ranked rival Asda, which recently reported a drop in its share of the market share to 12.6% from 13.8%.

Kantar noted a competitive landscape among supermarkets has it said has led to an increase in promotions and discounts – nevertheless, price inflation was still forced higher.