Sainsbury’s grabbing online market share in UK?

In their quarterly results Sainsbury’s, the UK’s second biggest grocery retailer, revealed market shares for the UK online grocery market. The figures show that Sainsbury’s has been grabbing market share during the last years. From the early 2019 Sainsbury’s has increased their market share by 5,8 percentage points jumping from the fourth place to become the second biggest online grocer in the UK.

Tesco is still by far the biggest online grocer with almost 35% market share. Online is quite significant over-performer for Tesco as the offline market share for the company is below 30%. Tesco’s lead in the channel has been diminishing over the years as the company used dominate UK online with almost 50% market share.

One curious detail in the numbers is the Ocado market share. Despite heavy investments and big headlines, Ocado remains a challenger even in the online channel where it has proclaimed to being superior to the “old incumbents”. Ocado is also the only online grocer to operate a warehouse based picking for online.

In the leading online grocery market in the world, store based picking seems to remain the dominant model.

About 85% of all online revenue is picked from the stores (or adjacent to them with MFC).