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Report
en_GB
The UK grocery market entered 2026 as a mature but demanding category, shaped by intense competition, margin pressure and flexible shopper behaviour. While overall growth remains modest and largely price-led,…
UK
Food and Drink Retail
simple
UK Grocery Retail: Brand Comparison 2026
"In a market where shoppers are less loyal, success depends less on headline positioning and more on how clearly a retailer delivers value, convenience and is consistently reliable across different shopping missions."
The UK grocery market entered 2026 as a mature but demanding category, shaped by intense competition, margin pressure and flexible shopper behaviour. While overall growth remains modest and largely price-led, retailer performances are becoming more uneven as retailers with scale, clarity and strong execution extend their advantages.
Shopper behaviour continues to shift away from exclusive loyalty towards broader repertoires, with households spreading spend across multiple retailers to meet different missions. Around one in five shoppers now use five or more grocery retailers each month, underlining how situational choice has become. As a result, success is less about winning every shop than securing clear, defensible roles within shoppers’ routines.
Ongoing pressures from labour inflation and rising technology investment are stretching operating models, placing a premium on efficiency and consistency. Loyalty-linked pricing is now firmly embedded as a structural feature rather than a short-term response, reinforcing price sensitivity while reshaping perceptions of value.
Retailers face a widening gap between simply meeting core expectations and giving shoppers a clear reason to choose them. Trust, availability and basic value are increasingly taken for granted, while sustainability remains weakly associated with any single retailer, creating scope for brands that can deliver it in clearer, more shopper-relevant ways.
This Report Looks at the Following Areas:
Competitive gaps are widening between grocery retailers with a clear reason to shop them, and those whose pricing, experience and offer do not line up in shoppers’ minds.
Value decisions are no longer driven by price alone. Shoppers weigh affordability alongside fairness and convenience, with clear signals that a retailer is making shopping easier playing a growing role at the point of choice.
The in-store experience is becoming more important in shaping where shoppers return, as ease of navigation, calm environments and confidence that a shop will be hassle-free influence repeat spend.
Loyalty schemes are shifting away from long-term lock-in and towards more flexible rewards focused on immediate savings and practical benefits, particularly as shoppers continue to split spend across multiple retailers.
Digital tools and self-service features are now expected rather than standout, with failure to deliver them risking frustration rather than acting as a reason to choose a retailer.
Environmental credentials remain weakly defined across the sector. With many shoppers unable to name a grocery retailer they associate with environmental leadership, there is clear scope for brands to stand out through more visible and believable action.
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EXECUTIVE SUMMARY
What you need to know
Outlook for UK grocery retailing
Opportunities
Own the effortless shop
Rethink loyalty for a multi-mission market
Make sustainability a personal win
THE MARKET
Grocery is a mature market wherein clarity and scale increasingly shape outcomes
Steady growth forecast through to 2030
Graph 1: market value forecast for all grocery retail sales (inc. VAT), 2019-30
MARKET DRIVERS
Consumers and the economic outlook
Digital capability becomes a key competitive differentiator
Labour pressure reshapes the in-store experience
Online grocery growth becomes selective and execution-led
KEY RETAILERS
Tesco continues to stretch its lead over rivals
Graph 2: estimated market share of the top 10 grocery retailers, 2025
Scale and value continue to set competitive advantage
Growth niches persist beyond the mainstream shop
THE CONSUMER
Metrics and rankings
Lidl leads the way on spending growth; Asda is the only player to contract
Graph 3: average spend per transaction and average spend growth for leading grocery retailers among the SpendMapper cohort, 2025/26
Scale and convenience reinforce Tesco’s lead
Tesco is the most-trusted grocer
Graph 4: trust associations with select grocery retailer, 2026
M&S must capitalise on its reputation
Graph 5: reputation associations with select grocery retailer, 2026
M&S is the grocery brand most associated with quality
Graph 6: high quality associations with select grocery retailer, 2026
Tesco has done the best in securing environmental credentials
Graph 7: environmental care associations with select grocery retailer, 2026
Consumer-facing visible change separates the innovation leaders
Graph 8: innovation associations with select grocery retailer, 2026
Some brand associations remain weak across grocery retail
Graph 9: number of grocery shoppers not associating any retailer with selected attributes, 2026
Where brand meaning is still up for grabs
The power of value in retailer choice
Value sets the terms of engagement
Graph 10: how retailers can add value to the grocery shop, 2026
Building value through effort reduction
Asda is still not cutting through on value compared to Tesco
Graph 11: variation from the average in percentage of primary shoppers with each brand who rate it positively* for price/value for money**, 2026
Tesco’s success is underpinned by strong value credentials
Build retention with behind-the-scenes efficiency
Asda and Morrisons are missing the mark on product quality
Graph 12: variation from the average in percentage of primary shoppers with each brand who rate it positively* for product quality**, 2026
Own-label tiers give shoppers options
Own-label shifts value from price to usefulness
Asda and Morrisons also fall behind on own-brand product selection
Graph 13: variation from the average in percentage of primary shoppers with each brand who rate it positively* for choice of own-brand products**, 2026
The in-store experience
The in-store environment shapes how grocery brands are experienced
Asda is still suffering from under-investment in stores
Graph 14: variation from the average in percentage of primary shoppers with each brand who rate it positively* for store experience**, 2026
Convenience-led services resonate most with younger shoppers
Tesco main shoppers are keenest on in-store services
Graph 15: agreement with statements about the in-store experience, by main grocery retailer shopped at, 2026
Strong affinity with third-party brands offers potential to boost footfall
Morrisons till upgrades promise faster, smoother checkouts plus more data and personalisation
Graph 16: variation from the average in percentage of primary shoppers with each brand who rate it positively* for in-store checkout experience**, 2026
Higher-income shoppers are most open to in-store technology
Graph 17: support for in-store technology designed to make shopping easier, by income bracket, 2026
Availability: the Holy Grail of grocery retailing
Graph 18: variation from the average in percentage of primary shoppers with each brand who rate it positively* for product availability**, 2026
Customer loyalty
Loyalty is flexible, not exclusive
Mission-driven shopping is increasing fragmentation in grocery retail
Graph 19: repertoires of grocery retailers used, by current financial situation, 2026
Retailers with the broadest range of outlet types have the highest loyalty
Graph 20: comparison of selected loyalty-based KPIs for leading grocery retailers among the SpendMapper cohort, 2026
Shoppers favour simple, tangible loyalty rewards
A clear hierarchy of appeal in loyalty schemes
Asda is missing the mark with its loyalty scheme
Graph 21: variation from the average in percentage of primary shoppers with each brand who rate it positively* for loyalty or rewards programme benefits**, 2026
INNOVATION AND MARKETING
Retailer focus of investment and innovation switches back to stores
Using tech to enhance the in-store experience
ESL adoption grows
Innovation aims to boost attractiveness of loyalty schemes
Tesco leads in ad spend, but discounters are growing their investments
Graph 22: top ten grocery retailers spending on above-the-line online display, direct mail and social media advertising expenditure, 2025
Waitrose pushes addition of tiered treats and personalisation to its loyalty scheme
Lidl looks to shift the dial on value
APPENDIX
Report scope
The consumer
Consumer research questions
Consumer research methodology
Repertoire analysis methodology
UK generation groups
Other data source methodologies
Nielsen Ad Intel coverage
Leading retailers: historic market shares
Advertising spend
Share of spending by advertising channel
Snoop SpendMapper methodology
Abbreviations
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