Kantar: No increase in grocery prices is ‘big news’

Retail analysts Kantar has said the steadying of inflation on the UK grocery market over the last three months is “big news” for shoppers, as the hot weather in June boosted sales of booze.

Shoppers spent an additional £158 million on alcohol over the 12 weeks to 16 July, the latest figures showed. Categories in particular growth included gin, up 29%, cider, up 20%, ale showing a 9% sales uplift, and a 6% increase in lager sales, Kantar confirmed.

The latest figures on the UK market show like-for-like inflation standing at 3.2%, the same rate of increase as this time last month, indicating that price rises are no longer accelerating.

Head of retail and consumer insight at Kantar Worldpanel Fraser McKevitt pointed out that the market has grown more than 3% for the fourth period in a row, with supermarket sales up by 3.9% compared to the same period last year.

“Hard pressed shoppers will welcome any sign of inflation peaking,” he said. No change in rates of price increases is big news a year on from Sterling’s devaluation in the wake of the EU referendum,” he said.

The hot weather also boosted wine and booze sales, with Shoppers spending an additional £158 million on alcohol over the 12 weeks to 16 July.

However, inflation over the last few quarters has seen an increased growth of own label across the market, up 6.7% year on year, McKevitt said – and brands were increasingly coming under pressure as a result.

“But own label is not just about saving, premium own label is the fastest growing area of the market,” he added, pointing to the overall year-on-year growth of premium own-label of 13.9%, compared to branded lines up 0.9% compared to last year. As a result, supermarket own brand lines currently have a 51% share of consumer spending, he added.

Meanwhile the discounters continued to take market share, with Lidl reporting the fastest growth since October 2014, of around 19.4%, wonly slightly ahead of Aldi, whose sales rose 17.9%, boosting its market share to 7%. Lid’s market share rose to 5.1% in the 12 week period.

Performance at the big four was more muted – Tesco, Sainsbury’s and Morrisons saw sales increases of 2.3%, 2.2% and 2.1% respectively, boosted by increase in online sales, with Asda’s sales up 1%, on the back a new shoppers to its stores.

Leave a Reply

Your email address will not be published. Required fields are marked *

Please note that comments are subject to our posting guidelines in accordance with the Defamation Act 2013. Posts containing swear words, discrimination, offensive language and libellous or defamatory comments will not be approved.

We encourage debate in the comments section and always welcome feedback, but if you spot something you don't think is right, we ask that you leave an accurate email address so we can get back to you if we need to.

Subscribe to our newsletters

Key Account Manager

MMI Maldives
Maldives

Financial Controller

London City Bond
Barking, UK

Duty Manager

The Whisky Exchange
Great Portland Street, London

Spirits Advisor

The Whisky Exchange
London, UK

International Sales Manager

Elixir Distillers
Park Royal, London, UK

Brand Marketing Executive

Elixir Distillers
Park Royal, London, UK

Cellar Door Manager

House of Townend
Melton, North Ferriby, UK

Marketing Manager

The Whisky Exchange
Whitby Avenue, Park Royal, London NW10 7SF

Millésime Bio 2020

Montpellier,France
27th Jan 2020

Maisons Marques et Domaines Annual Tasting

London,United Kingdom
29th Jan 2020

Austrian Wine Tasting

London,United Kingdom
3rd Feb 2020
Click to view more