Euro 2024 Fuels UK Supermarket Surge – TSCO, SBRY Market Share Grows

In an impressive show of resilience, UK supermarkets have experienced a resurgence in sales over the past month, marked by a 2.2% increase in the four weeks leading up to July 7th. This growth phase coincides with the much-anticipated UEFA Euros football tournament, which significantly boosted sales in specific market segments, particularly beverages and snacks.

The latest industry data also reveals a notable downtrend in grocery inflation, with supermarket price inflation registering at just 1.8% for the 12-week period ending on July 7th—the lowest rate since September 2021. As consumers continue to navigate the challenges of a post-pandemic economy, this decline in inflation comes as a welcome relief.

Football fever contributed to heightened sales of beer, which surged by an average of 13% on days when the England men's team competed. This increase reflects a broader trend wherein major sporting events serve as catalysts for specific consumer purchasing patterns, highlighting the importance of sporting occasions in driving retail performance.

Ocado (LON: OCDO) emerged as the fastest-growing grocer for the fifth consecutive month, with its sales jumping by an impressive 10.7% over the same 12-week period. This performance has also translated into an increased market share for the company, now standing at 1.8%.

Tesco (LON: TSCO), the UK's largest supermarket chain, also saw significant growth, capturing its largest market share gain in over two and a half years. With a rise to 27.7% of the market, up from 27% last year, Tesco's expansion reflects their successful adaptation to the evolving retail landscape.

Meanwhile, J Sainsbury's (LON: SBRY) also enjoyed robust growth with a 4.7% increase in sales over the 12-week span, resulting in a steady market share of 15.3%. On the other hand, Asda faced a 5.3% downturn in sales. Conversely, budget retailer Aldi exhibited a modest growth, with sales inching up by 0.1%.

The race for the fifth-place spot in the market is narrowing with Lidl's 7.8% growth challenging Morrisons, which has witnessed a market share contraction from 8.7% to 8.1% over the past month. This competition underscores the intense dynamics within the supermarket sector, where small shifts can lead to significant changes in market positioning.

The UK supermarket scene has seen a mix of successes and setbacks, with the Euros providing a significant boost to sales, whilst the continued decline in inflation eases pressure on consumers and retailers alike. The industry remains vigilant and adaptive, amidst changing consumer needs and the ongoing influences of global sporting events.