Tesco enjoys best growth in three years, Kantar data shows

Tesco growth rate in the last three months is fastest in three years, according to research by Kantar Worldpanel published on Tuesday, while big rivals Sainsbury's, Asda and Morrisons all declined.

Although grocery prices fell for the 28th consecutive month, the rate of deflation continued to ease with prices down 0.5% compared to last year compared to the 0.8% drop a month ago, but well off the 1.1% in September, 1.3% in August and 1.4% in June and July.

Tesco's sales increased 2.2% in the 12 weeks to 6 November, with most of the gains coming from its own-label products at the cheaper and more premium ends of the price scale.

"Much of Tesco’s growth has come from more affluent shoppers returning to the store, and average spend per trip is up by 2.1% to £20.69,” said Fraser McKevitt, Kantar's head of retail and consumer insight.

Tesco's market share of consumer spending in the industry remained at 28.2%.

While the market leader was regaining strength, nearest rival Sainsbury's saw total sales continue fall, down 0.7% on last year, with market share flat over the last month at 16.3%.

Asda had yet another bad month, but its rate of decline slowed slightly to 5.0%, helped by increased sales in its premium own-label lines. Its market share remained flat.

Morrison's sales fell 2.4% year-on-year, reflecting the sale of convenience stores last year, though it market share also remained flat over the last month at 10.5%.

While there have been headlines about the brakes being put on the discounters, as their growth decelerated to its slowest rate since 2011, both Aldi and Lidl still attracted new shoppers, helped by continuing store openings.

Aldi lifted sales by 10.2%, with 0.55m more shoppers visiting over the 12 weeks – a bigger increase in visitor numbers than any other retailer.

Lidl sales growth slowed to a still market-beating 6.1%.