This month, UK grocery price inflation dropped to its lowest rate since February 2022. However, industry data reveals that almost a quarter of British households still report financial difficulties.
According to market researcher Kantar, annual grocery price inflation stood at 4.5% in the four weeks leading up to March 17, compared to 5.3% in the preceding four-week period. Kantar noted that prices are experiencing the most significant increases in sectors like sugar confectionery, chocolate confectionery, and vitamins & supplements, while witnessing the steepest declines in butter, milk, and toilet tissues.
“Since reaching a staggering peak of 17% in March 2023, grocery inflation has notably decreased,” stated Fraser McKevitt, Head of Retail and Consumer Insight at Kantar. “Nevertheless, despite this ongoing deceleration, a significant number of British households continue to face financial challenges. Our data shows that 23% of households describe themselves as financially strained, which is consistent with the figure reported in November of last year.”
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Kantar reported that year-on-year take-home grocery sales increased by 4.6% over the four-week period. The research firm highlighted that an early Easter contributed to an £88 million ($111 million) rise in sales of seasonal treats in the first quarter of 2024 compared to the same period in the previous year.
According to Kantar, online supermarket Ocado was the UK’s fastest-growing grocer in the 12 weeks leading up to March 17, with a year-on-year sales increase of 9.5%. This growth was attributed to a continuous voucher campaign that aided in attracting customers.
Tesco, the industry leader, and second-ranked Sainsbury’s experienced sales growth of 5.8% and 6.7% respectively, both gaining market share. Meanwhile, Asda, ranked third, showed slower growth with sales up by 0.2%, whereas Morrisons recorded a 3.6% increase in sales. The German-owned discount retailers, Aldi and Lidl, witnessed sales growth of 3.1% and 8.8% respectively.
However, while Lidl’s market share grew, Aldi’s declined slightly.
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