(Alliance News) – UK food price inflation has eased again, according to market research by Kantar on Tuesday, while supermarket sales were boosted by increases in food products. essentials for the summer, such as hay fever medicines and strawberries, which have passed through supermarket checkouts.
Kantar said food price inflation declined to 14.9% in the four weeks to July 9. It is the fourth month in a row that the annual rate of increase in food prices has fallen in the UK, and Kantar noted that the latest slowdown in inflation, which fell from 16.5% in the previous month, is the largest since peaking at 17.5% in March.
“Food price inflation has now been falling for four consecutive months. This is good news for many households, although of course the rate remains incredibly high. promotions increased for the first time in two years, now accounting for just over a quarter of the total market,” said Kantar analyst Fraser McKevitt.
“One of the most significant changes we have seen in this area is retailers stepping up loyalty card offers such as Tesco’s Clubcard prices and Sainsbury’s Nectar prices. a shift in focus from grocers who had focused on everyday low prices, including offering more value-packed own-brand product lines.”
Total sales in the 12 weeks of the survey, to July 9, rose 11% to £33.24 billion, from £30.03 billion the previous year.
“The first two weeks of July mean strawberries and cream for many people and this year was not disappointing as record numbers of people lined up to watch the action at SW19,” added Mr. Kantar’s McKevitt, referring to the annual Wimbledon tennis tournament in London.
“Spending on strawberries and crème fraîche was up 16% and 13% from last year. Shoppers, however, will have been pleased to find that this traditional treat didn’t hurt their pockets too much this month, with the average price of a pack of strawberries only up a penny from last summer.”
Mr McKevitt added: “Many of us have embraced the opportunity to eat al fresco, with volume sales of barbecue classics like chilled burgers up 7% and chilled dips up 5%. Sales of hay fever remedies are up 16% in the past month as people struggle with seasonal allergies.”
Tesco PLC remained the dominant grocer in terms of market share in the UK, although it was German rival Aldi which once again recorded the fastest growth.
Tesco’s sales were up 10% year-on-year in the 12 weeks, although its market share fell slightly from 27.1% to 27%.
J Sainsbury PLC saw its sales increase by 11% year-on-year, but its market share remained unchanged at 14.9%.
Online supermarket Ocado Retail, owned by Ocado Group PLC and Marks & Spencer Group PLC, saw sales increase by 2.0%. However, its market share fell from 1.8% to 1.7%.
Aldi’s sales jumped 24% year-on-year and its market share improved significantly from 9.1% to 10.2%. Sales of fellow countryman Lidl jumped 22% and its share of the UK market fell from 7.0% to 7.7%.
The Kantar survey is based on the shopping habits of 30,000 “demographically representative” households in Britain.
By Eric Cunha, Editor of Alliance News
Comments and questions to [email protected]
Copyright 2023 Alliance News Ltd. All rights reserved.
