Sainsbury’s market share jumped by 0.5 per cent in the three months to 4 August compared to the same period of last year.

According to data from Kantar, the figures represents the largest year-on-year market share gain for the supermarket since July 1997.

The retailer was also once again the fastest growing of the traditional supermarkets, with overall sales increasing by 5.2 per cent.

Rival Asda performed the worst out of the top four British supermarkets, with sales dropping six per cent over the 12-week period. The company's market share also declined by 1.1 per cent.

Co-op was the only other well-known supermarket brand that also saw a decline in sales, dropping by 1.8 per cent over the period.

Tesco maintained its streak of winning market share every month since August 2023. Its hold of the market increased by 0.6 percentage points to 27.6 per cent, while its sales jumped by 4.9 per cent.

Budget supermarkets Lidl and Aldi also both saw sales and market share growth.

Sales rose by 11.3 per cent at online grocery retailer Ocado, continuing its six-month run as the fastest growing grocer.

Waitrose’s share increased by 0.1 percentage point to 4.5 per cent, with sales also up by 4.5 per cent, marking its strongest growth since November last year.

Grocery inflation

Grocery inflation increased to 1.8 per in the four weeks to 4 August, the first hike since March 2023.

The data shows that prices are rising fastest in categories such as vitamins/minerals/supplements, fruit juices and drinks, and chocolate confectionery, while prices are falling fastest in toilet tissues, bottled colas, and dog food.

“Having reached its lowest rate in almost three years in July, August saw inflation nudge up again slightly," said Fraser McKevitt, head of retail and consumer insight, Kantar. "While this is noticeable following 17 straight months of falling rates, it actually marks a return to the average levels seen in the five years before the start of the cost of living crisis.”

Overall, prices have increased across 182 product categories while costs have dropped for 89.

This pricing spread means that many shoppers will find that the type of product they are putting in their baskets will dictate how much they pay.

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