Ocado named fastest-growing grocery retailer in Christmas run-up

(Sharecast News) - Shares in Ocado were rising strongly in London on Wednesday after data from NielsenIQ showed that the online retailer led the pack in grocery retail growth over the past three months. Ocado, which holds just a 1.9% share of the UK grocery market, was the fastest-growing retailer in terms of year-on-year sales growth over the 12 weeks to 29 November.

Lidl, which has a 7.8% market share, was the second-fastest growing retailer with sales 9.8% higher than last year, while Marks & Spencer (3.9% share) was third with 9.2% growth.

Heavyweights Tesco (26.4% share) and Sainsbury's (15.3% share) saw sales grow 4.5% and 5.2% respectively, while the third-largest supermarket chain, Asda, reported a 7.0% sales lump as its market share fell to 10.9% from 12.2% the year before.

Ocado's shares were up 7.1% at 208.5p by 1121 GMT. Tesco was up 1.7%, M&S was trading flat while Sainsbury's gained 0.6%.

The data came alongside NielsenIQ estimates that predicted that £20bn would be spent on Christmas groceries overall, up 2.8% on last year, with £5.7bn spent during the week to 20 December alone.

However, with food inflation still rampant, UK consumers are still prioritising affordability, with 40% of UK households planning to use saved loyalty points and vouchers this Christmas, while 23% said they would shop around for promotions to maximise savings, according to a NielsenIQ survey.

"Shoppers are looking for an affordable Christmas this year and many have been holding back their spend with unit growths across the total store down -0.8%," said Mike Watkins, head of retailer and business insight at the research firm.

"Instead, they are spending wisely and making focused savings on the weekly shop to be able to buy some treats and indulgences for the family in December."