Though inflation continues to rise in the U.K., grocery sales are surging, and certain retailers are looking to expand this year to capitalize on the sales growth.
Take-home sales across all U.K. grocery chains grew by 3.8 percent in the four weeks leading to 25 January compared to the same period a year ago, according to Worldpanel by Numerator data. Fresh fish sales in particular benefited from shoppers seeking out higher-protein and healthy options, growing 5 percent in January as a result, according to Worldpanel.
“Shoppers are actively seeking out foods that support their health goals, with strong demand for staples high in nutrients like protein and fiber. While interest in seasonal diet-focused trends like ‘Veganuary’ is on the decline, shoppers are taking a more practical, balanced, and achievable approach to healthy eating, built around foods already familiar to most households,” Worldpanel Head of Retail and Consumer Insight Fraser McKevitt said in a release.
These retail gains played out even as food inflation increased to 3.9 percent in January, which was more than the 3.3 percent seen in December 2025, according to the British Retail Consortium (BRC). Simultaneously, fresh food inflation increased to 4.4 percent in January, marking an increase from 3.8 percent in December and rising above the three-month average of 3.9 percent.
“Any suggestion that inflation has peaked is simply not borne out. Shop price inflation jumped this month due to high business energy costs and the hike to National Insurance continuing to feed through to prices,” BRC Chief Executive Helen Dickinson said, adding that meat, fish, and fruit prices have been particularly affected.
To ensure that consumers still head to the tills, retailers are implementing measures such as reducing prices on everyday items as a way to drive foot traffic, Watkins said.
With shoppers seeking value, own-label sales accounted for 52.2 percent of grocery spending in January – the highest level ever recorded, according to Worldpanel by Numerator.
Despite challenges in the industry, some U.K. grocery chains, including Aldi and Tesco, are aiming to expand this year.
Aldi, the U.K.’s fourth-largest supermarket, said it would invest GBP 370 million (USD 506 million, EUR 426 million) this year to open 40 new stores across the country. This includes the development of new stores in Southam in Warwickshire, Hastings in East Sussex, and Amersham in Buckinghamshire.
The expansion is part of Aldi’s GBP 1.6 billion (USD 2.2 billion, EUR 1.8 billion) two-year investment program announced last year, as the retailer works toward its long-term ambition of operating 1,500 U.K. stores.
Meanwhile, Tesco plans to open 70 more Express stores before March 2027.
The company acquired five former Amazon Fresh stores in London, which will reopen as Tesco Express stores before the summer. New Express stores are also planned for a wide range of areas and communities including Devon, County Tyrone, and East Lothian.
At the same time, Tesco is also expanding its large store format. Following the successful openings of new superstores in Ripon in November 2025 and then Harrogate in December, two large stores will open in Scotland in 2026.
