(Alliance News) - UK grocery price inflation resumed its slowdown, while Ocado delivered its quickest rate of growth since May 2021, figures on Tuesday showed.
Supermarket prices were 1.7% higher than a year ago in the four weeks that ended September 1, slowing from 1.8% growth in August, according to retail sector analysts Kantar.
As price inflation eased, sales picked up. Take-home sales at the grocers rose by 3.0% over the 12 weeks to September 1 to GBP33.59 billion from GBP32.62 billion one year ago.
Ocado was the fastest growing grocer for the seventh consecutive month, delivering its quickest rate of growth since May 2021 with sales up by 13% to GBP607 million from GBP537 million.
This put it ahead of the total online market, which expanded by 4.4%. The online-only retailer's market share increased by 0.2 percentage point, to 1.8% from 1.6% a year prior.
Ocado Retail is a joint venture between Ocado Group PLC and Marks & Spencer Group PLC.
Britain's largest retailer Tesco PLC now takes 27.8% of sales, an increase of 0.6 percentage points from 27.2% last year and its highest market share since January 2022.
Sales rose 5.3% to GBP9.33 billion from GBP8.86 billion a year ago.
J Sainsbury PLC's market share nudged up to 15.2% from 14.8% a year ago while sales increased by 5.7% to GBP5.10 billion from GBP4.82 billion.
Lidl's sales were 9.1% higher than a year ago at GBP2.70 billion from GBP2.47 billion, with footfall in August boosted through digital vouchers for bakery items. It now accounts for 8.0% of the grocery market, rising from 7.6% a year ago, having won share every month since April 2021. 
Spending through fellow discounter Aldi's tills rose by 1.3% to GBP3.33 billion from GBP3.28 billion, although its market share slipped to 9.9% from 10.1% a year ago.
Sales at Waitrose increased by 4.0% to GBP1.55 billion from GBP1.49 billion, while its share of UK grocery spending was unchanged at 4.6%. Frozen-food specialist Iceland grew by 4.4% to GBP782 million from GBP749 million, keeping its market share level at 2.3%.
Convenience retailer Co-Op now takes 5.9% of sales compared with 6.1% a year ago.
Asda's market share fell to 12.6% from 13.8% and Morrison's has 8.5% of the market, little changed from 8.6% last year.
Shares in J Sainsbury were flat at 299.80 pence in London on Tuesday. Tesco fell 0.9% to 365.50p, Ocado rose 1.0% to 340.38p and Marks & Spencer rose 0.5% to 354.40p.
By Jeremy Cutler, Alliance News reporter
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Tesco (TSCO)
Sainsbury's (SBRY)
Ocado (OCDO)
Marks & Spencer (MKS)
