Supermarkets Lock Horns in Fierce Price War as UK Shoppers Hunt for Value, Kantar Reports

The battle for consumers' wallets is heating up, as UK supermarkets ramp up price cuts to win over cost-conscious shoppers, according to the latest figures from Kantar.

Over the four weeks to 29 September, take-home sales at UK supermarkets rose by 2 per cent, the data shows, with grocers increasingly turning to promotions in the run-up to the Chancellor’s autumn budget. Spending on discounted items surged by 7.4 per cent, a clear sign that households are feeling the pinch and hunting for bargains. Yet, even with these discounts, full-price sales managed only a modest rise of 0.3 per cent.

As competition intensifies, supermarkets are rolling back prices on essential items to secure their share of a tightening market. Fraser McKevitt, head of retail and consumer insight at Kantar, described the sector as fiercely competitive, noting: “The battle for value is on. Supermarkets are doing what they can to keep costs down for consumers, and thanks to their efforts, prices in some categories are falling.”

Shoppers’ habits were also influenced by September's unseasonably wet weather, with sales of warming staples like soup spiking as the country hunkered down.

Halloween preparations were another driver of change, as pumpkins flew off shelves, with sales nearly doubling last year’s figures, raking in almost £1 million in just four weeks.

On the performance front, Tesco, Britain’s biggest supermarket, claimed its largest share of the market since December 2017, with 28 per cent, up from 27.4 per cent last year. Sainsbury’s posted a solid 5.1 per cent sales growth, lifting its share to 15.2 per cent, while Asda now holds 12.6 per cent of the market.

Ocado cemented its position as the fastest-growing grocer for the eighth consecutive month, with a 10 per cent boost in sales over the latest 12 weeks. Its share now stands at 1.8 per cent, reflecting the growing strength of the online grocery sector, which expanded by 3.5 per cent to £3.7 billion. Now, over 22 per cent of households shop online for groceries.

The discounters also made significant gains. Lidl saw an 8.8 per cent jump in sales, bringing its market share to 8.1 per cent, while Aldi, Britain’s fourth-largest supermarket, holds 9.8 per cent of the market. Morrisons maintained its position with an 8.6 per cent share, unchanged from a year ago.

Waitrose and Iceland both held steady with 4.6 per cent and 2.2 per cent of the market, respectively, while convenience retailer Co-Op claimed 5.9 per cent of shoppers' spend.

As UK consumers look to stretch their budgets further, the supermarket price war shows no sign of easing. With autumn setting in and Halloween around the corner, the focus is firmly on value – and retailers are pulling out all the stops to stay ahead in the race for the British shopper.