M&S and Ocado fastest-growing supermarkets

OCADO and Marks & Spencer have been named the country’s fastest growing supermarkets as they win back middle-class shoppers.

Sales at Ocado in the 12 weeks to March 23 were 13pc higher than a year earlier while M&S was up 11.2pc, according to industry group Nielsen.

It is the latest sign well-heeled shoppers are returning after they opted for cheaper stores in the cost-of-living squeeze.

And it offers further evidence that the tie-up between M&S and Ocado is bearing fruit.

The Ocado retail 50-50 joint venture allows Ocado customers to buy M& S groceries online. After struggling in recent years, Ocado retail boss hannah gibson said the company ‘hit the ground running’ after Christmas.

Lidl also performed well, with sales 9.4pc higher, while Sainsbury’s saw a 7.9pc gain and Tesco was up 6.3pc.

Morrisons and Waitrose are growing faster than Aldi – up 4.7pc, 4.1pc and 3.9pc respectively – but Asda has ground to a halt with sales up just 0.8pc.

The figures raise fresh concerns over Asda since its takeover by the Issa brothers and TDR Capital.

With Ocado and M&S on the rise, Waitrose yesterday cut prices for the second time in two months, reducing more than 200 products by around 7pc. even so, industry experts believe M&S, which has 3.4pc of the market, could leapfrog Waitrose (3.6pc) this year.

Nielsen said there was ‘intense competition’ between supermarkets with price war around Mother’s Day and easter.

Total grocery sales in the four weeks to March 23 were 5.4pc higher than a year earlier. Food prices are 3.7pc higher.

Nielsen’s Mike Watkins said: ‘ encouraging more visits is likely to be the next battleground for retailers.’