UK Grocery Sales Climb Amid Price Inflation Concerns

UK grocery sales rose 4.6% YoY to £35.97bn in the 12 weeks to July 13, while grocery price inflation accelerated to 5.2%, its highest level since January 2024. Tesco remained the largest grocer by market share, with Lidl achieving a milestone of a 8.3% market share. Own-label products outpaced brands, growing 5.6% vs 4.9%, as households adapted to avoid price rises.

UK grocery sales rose 4.6% year-on-year to £35.97 billion in the 12 weeks to July 13, according to data from market researcher Worldpanel [1]. This increase was accompanied by a significant acceleration in grocery price inflation, which reached 5.2%, the highest level since January 2024 [2].

The rise in grocery sales was driven by a combination of factors, including warmer weather that boosted sales of seasonal staples such as ice cream and strawberries. The latter saw a significant increase in sales, with Wimbledon helping to reignite demand for strawberries and cream [3]. Additionally, consumers are adapting their shopping habits to mitigate the impact of price increases, with a majority of households expressing concern about grocery costs [1].

Tesco, the largest UK grocer by market share, saw its sales rise 7.1% year-on-year to £10.20 billion, increasing its market share to 28.3% [1]. Lidl, a discount chain, achieved a milestone by reaching an 8.3% market share, up from 7.8% a year earlier, attracting more than half a million new customers [3]. Aldi also saw its market share rise to 10.9% from 10.7% [3].

Own-label products continued to outperform brands, growing 5.6% compared to a 4.9% increase for branded items [1]. This shift in consumer behavior is a direct response to the rising cost of groceries, with nearly two-thirds of households expressing significant concern about their grocery bills [2].

The data highlights the ongoing challenges faced by UK consumers due to persistently high inflation. While some retailers, such as Tesco and Lidl, have seen growth in market share and sales, others, like Asda, have experienced declines. The overall impact of these trends on consumer spending and the broader economy remains to be seen.

References:
[1] https://www.marketscreener.com/news/uk-grocery-sales-climb-as-price-climbs-fuels-inflationary-worries-ce7c5cdcde8ef72d
[2] https://www.reuters.com/business/retail-consumer/uk-grocery-inflation-jumps-52-four-weeks-july-13-worldpanel-says-2025-07-22/
[3] https://www.retailgazette.co.uk/blog/2025/07/grocery-bills-275/