Data and loyalty strategy key to Tesco UK domination

Tesco’s scale, data and loyalty mean that it now accounts for one in every three supermarket transactions in the UK, giving the retailer a commanding lead over rivals Sainsbury’s, which accounted for 15% of transactions, and Asda, which took 14%.

That is according to new research from financial provider Zable, which analysed customer credit card data and found Tesco accounted for 33.6% of all supermarket transactions tracked.

The findings suggest Tesco’s dominance extends beyond its position as the UK’s largest grocer – with around 28% of the market share – highlighting the retailer’s grip on consumers’ day-to-day shopping habits through a combination of supermarkets, convenience stores and online services.

Zable analysed transaction volumes, spending patterns and purchase timings across major retailers to identify where consumers are shopping, as well as how preferences vary across demographic groups and regions.

The research also revealed clear differences in supermarket preferences by age. Waitrose and Marks & Spencer Food attract the oldest customer bases among the retailers analysed, with more than a third of transactions coming from shoppers aged 50 and over, at 35.6% and 34.6% respectively.

Meanwhile, Aldi, Lidl and Asda are most popular among shoppers aged 40 to 49, suggesting value-focused supermarkets continue to resonate strongly with those managing larger family grocery shops and looking to stretch household budgets further.

The data also highlighted significant regional variation in supermarket loyalties. Sainsbury’s performs particularly strongly in London, accounting for almost a quarter (24.9%) of supermarket transactions in the capital. Asda, meanwhile, records its strongest performance across northern and post-industrial towns and cities.

Store networks appear to play an important role in shaping those results. Tesco’s extensive national footprint, including its large estate of Tesco Express convenience stores, supports its outsized share of shopping trips. Sainsbury’s convenience business is especially concentrated in London, while Asda retains a strong presence across northern England, reflecting its Yorkshire roots.

Related stories
Tesco and Adobe jump in bed to get even more personal
Tesco enlists 280,000 staff for trial of AI shop assistant
Major brands back Tesco premium video ad placements
Tesco Media raids Walmart for chief operations officer
EssenceMediacom extends 10-year Tesco relationship

Be the first to comment on "Data and loyalty strategy key to Tesco UK domination"

Leave a comment