The market share of the leading supermarkets in Great Britain (GB) from January 2017 to April 2024 has remained fairly stable. Tesco and Sainsbury’s had the largest share over the period under consideration, holding 42.7 percent of the market together as of April 2024.
Prior to the popularity of the discounters, the grocery retail market was dominated by the ‘big four’ supermarkets: Tesco, Sainsbury’s, Asda, and Morrisons. On the back of the post-Brexit uncertainty and growing inflation, consumer behaviour has shifted in favour of cheaper alternatives such as Aldi and Lidl. So how does this bode for Tesco’s?
Will Tesco Marketplace Last?
Tesco Marketplace Director, Peter Filcek, describes the launch of Tesco’s new marketplace as an exciting development aimed at enhancing customer convenience. He emphasises that the marketplace will improve the shopping experience by offering the same quality and value customers expect from Tesco, but with a wider range of products from selected partners.
Previously, Tesco had two separate sites: Tesco.com for groceries and Direct for household goods and clothing. Now, Tesco integrates its marketplace into its online grocery shopping via its website and app, where customers can also earn Clubcard points on all purchases.
Tesco’s extensive Clubcard membership will be a key advantage for the marketplace, with the integration of multiple Tesco apps into a single ‘super-app’ boosting loyalty program participation. This type of data insights can truly help brands connect with their audience and retarget customers in a truly powerful way.
Currently, Tesco is financially stronger, and the online market is more developed. The new Tesco Marketplace focuses on serving existing customers rather than competing directly with Amazon. The marketplace features a curated selection of proven suppliers, with vendors fulfilling their own orders and adhering to Tesco’s delivery standards. This approach minimises Tesco’s risk of negative feedback from issues outside its control.
We believe that Tesco’s has fixed its previous issues and has come back stronger than ever. Offering brands a great opportunity to thrive on their new marketplace. If you’d like to find out how to get started, get in contact with our e-commerce experts today.
