UK grocery sales picked up as supermarkets were mindful of inflationary pressures on shoppers, with promotions playing a large role in spending activity, numbers from Kantar showed on Tuesday.

For the twelve weeks ended March 23, total grocery sales rose 3.2% to £34.75 billion from £33.67 billion a year prior.

Take-home grocery sales grew 1.8% in the four weeks to March 23 compared to the same period in 2024, the slowest rate of growth since June of last year.

Grocery price inflation picked up to 3.5% over the same period, with Kantar noting that prices are increasing the fastest in markets such as ‘chocolate confectionery, butters & spreads and chilled smoothies & juices’. In the four weeks to February 23, this figure was 3.2%.

Promotional activities played a large role in spending activity in March, with spending on promotions reaching the highest level in the month for four years.

According to Kantar, this made up 28.2% of all grocery sales, with £2.6 billion owed to price cuts.

Fraser McKevitt, head of retail and consumer insight at Kantar, said: ‘With prices continuing to rise, supermarkets are mindful of the need to invest to attract shoppers through their doors.

‘Retailers’ price cuts were responsible for £2.6 billion of promotional spending, 8.8% more than the same time last year and significantly higher than the £686 million spent on multibuy deals and ’extra free’ offers.’

McKevitt continued: ‘Despite the recent surge, we’re still some way off the promotional records hit in the wake of the financial crisis. Average spending on deals in 2012 was 39.8%, meaning there could still be more headroom to go.

‘However, the market has changed a lot in that time, with the discounters holding a far higher share today than they did 13 years ago.’

Kantar said Britain’s largest grocer Tesco PLC increased sales by 5.4% in the 12 weeks to March 23, growing them to £9.68 billion from £9.18 billion the prior year. Its market share improved to 27.9% from 27.3%, maintaining its dominant industry position.

J Sainsbury PLC also reported market share gains, improving to 15.2% from 15.1% as sales grew 4.1% to £5.29 billion from £5.08 billion. This marked 35 consecutive periods of year-on-year growth, Kantar said.

Aldi saw its market share hit 11.0% for the first time, as it marks the 35th anniversary of its first UK store opening on April 5. Sales grew 5.6% to £3.81 billion from £3.61 billion.

Fellow discounter Lidl saw its sales advance 9.1% to £2.71 billion from £2.48 billion, lifting its market share to 7.8% from 7.4%.

Ocado Group PLC held its position as the fastest-growing grocer, increasing sales by 11% to £698 million from £628 million. Its market share edged upwards to 2.0% from 1.9%.

Tesco shares were down 2.0% on Tuesday morning in London, while J Sainsbury shares were 3.0% lower. Ocado shares were up 0.3%.

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