UK supermarkets see slowed growth as cost‑of‑living pressure hits sales, eye World Cup lift

Supermarket sales in the United Kingdom slowed after Easter as weak consumer sentiment and cooler weather reduced growth. Total till sales rose 4.2% year‑on‑year in the four weeks to 16 May, but growth fell to just 0.2% in the following three weeks, reflecting higher fuel costs, council tax pressures and low consumer confidence. Ocado, Marks & Spencer and Lidl were the fastest‑growing retailers (+15.1%, +11.8% and +9.3% respectively), while Asda lost market share with a 4.7% decline.

Grocery price inflation eased to 3.1%, the slowest rise since December 2024, as shoppers leaned on promotions—30.3% of sales included a deal, up from 28.4% a year earlier. The UK government announced a £150 million cut to import tariffs on selected food items, expected to reduce household bills by about £5. Analysts anticipate a spending boost from the 2026 FIFA World Cup, with 48% of households showing interest, especially in desserts, snacks, soft drinks and non‑alcoholic beverages.

Early May weather dampened summer‑related categories such as suncare and ice‑cream, but soups, fresh pies and coffee saw year‑on‑year gains. War‑related food‑price concerns were also cited, but the forecast remains for higher summer‑essential spending as temperatures rise toward the end of the month.