Tesco leads charge as supermarkets enjoy Olympics jump

Team GB’s heroes’ welcome looked set to extend from Heathrow to supermarket aisles today, as Olympic success was credited for UK grocers’ best sales performance in nearly three years.

Britain’s medals haul combined with sunny weather to lift sales by 0.9% in the four weeks to August 13, research firm Nielsen said today. That was the quickest growth since November 2013, excluding Christmas and Easter periods.

“Brexit seems to have been replaced by an Olympic feelgood factor,” Nielsen’s Mike Watkins said.

Separate data showed Tesco in gold medal position versus its big four rivals. Sales fell 0.4% in the 12 weeks ending August 14, the slowest rate for six months, according to Kantar Worldpanel.

Improvement came from larger stores and its farm brands, whose fictitious names stirred controversy earlier this year. Farm-brand products were in over a quarter of shopping baskets in the three-month period.

“All things being equal, and if trends continue, we could see Tesco back in growth by the end of the year,” Kantar’s Fraser McKevitt said.

Sainsbury’s sales were down 0.6%, while Morrisons’ and Asda’s slid 1.8% and 5.5%. HSBC analysts raised the prospect owner Walmart may sell Asda.