Take-home grocery sales grow as inflation eased in January

Grocery sales jumped 3.8% year on year in the four weeks to January 25, 2026, while like-for-like grocery price inflation eased to 4% – the lowest level seen since April last year, which brought consumers some relief after a busy and expensive December.

During the period, own-label products accounted for 52.2% of all grocery spending, the highest levels ever recorded by Worldpanel by Numerator.

Demand for healthy food options also rose, with cottage cheese sales soaring 50% and functional drinks sales jumping 13%.

Promotional spending also picked up pace in the period, rising 10.9% year over year, the fastest growth rate since October 2024. By comparison, full-price sales edged up just 1.7%.

Worldpanel by Numerator head of retail and consumer insight Fraser McKevitt said: “For most shoppers, January is all about resetting household budgets, and this year was no exception. While grocery sales continue to grow and inflation eased to its lowest level in months, value remained front of mind for many – with own label hitting a record high, accounting for more than half of all grocery spend.”

Lidl fastest growing

Discounter Lidl was the fastest-growing bricks-and-mortar retailer in the period, with sales jumping 10.1% in January. The discounter’s market share now stands at 7.7%, an increase of 0.4 percentage points and continuing an unbroken run of market share gains stretching back to October 2021.

Sales at Ocado jumped 14.1% driven by growth in both customer numbers and shopping frequency. The retailer’s specialist market share jumped 2.1%.

Sainsbury’s spending rose 5.3%, with an increase to 16.2%. While Tesco matched this share again and now accounts for 28.7% of the market.

Waitrose sales rose 5.5%, while market share held steady at 4.7%. Aldi sales grew 10.1%, while market share jumped 3.8%.

Morrisons sales jumped 2.5%, while Iceland saw jumped 3.2%. Asda sales fell 3.7%, while Co-op sales dipped 1.6%.