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UK grocery price inflation spiked to a record high this month, while discount supermarket chains achieved more market share gains at the expense of industry leaders, figures on Tuesday showed.
According to the latest Kantar survey, UK grocery price inflation roared to 16.7% in the four weeks to January 22, potentially adding £788 to yearly shopping bills. The inflation figure was the hottest on record, Kantar said.
For the full 12 weeks of the survey ending January 22, grocery inflation spiked to 14.8% from 14.2% in the 12 weeks to Christmas Day.
‘Late last year, we saw the rate of grocery price inflation dip slightly, but that small sign of relief for consumers has been short-lived. Grocery price inflation jumped a staggering 2.3 percentage points this month,’ Kantar analyst Fraser McKevitt said.
‘Households will now face an extra £788 on their annual shopping bills if they don’t change their behaviour to cut costs.’
Total take-home grocery sales improved 7.6% annually to £33.97 billion in the 12-week period.
Among individual products, data found the UK consumer has so far stuck to new year’s resolutions. Volumes of low and no alcohol beer products grew, while sales of supermarket own-label ranges of vegan and plant-based products jumped 21%.
Among individual grocers, Tesco PLC remained the largest supermarket chain, though its market share dipped to 27.5% during the 12 weeks from 27.9% a year earlier. Sales were 6.0% higher at £9.33 billion.
J Sainsbury PLC’s sales climbed 6.1% on-year to £5.21 billion, though like Tesco, it suffered a market share decline. Its share of the UK grocery market faded to 15.4% from 15.6%.
Asda and Morrisons, which also make up the ’big four’, suffered market share falls to 14.2% from 14.4% and 9.1% from 9.9%, respectively. Asda sales rose 6.0%, though Morrisons suffered a 1.9% decline. Alongside Waitrose, Morrisons was the only individual grocer to see sales fall. Waitrose sales decline 0.6%.
Ocado PLC sales rose 7.6% to £597 million. Its market share was unchanged at 1.8%.
Cost-of-living troubles have meant consumers are on the hunt for value, and the likes of Aldi and Lidl received a boost as a result. Aldi sales jumped 27%, the best-performing grocer, while Lidl’s surged 24%.
Aldi’s market share climbed to 9.2% from 7.8%, and Lidl’s improved to 7.1% from 6.2%.
In London, Tesco share were 0.2% lower at 247.20 pence each in early trade. Sainsbury’s was also down 0.2%, trading at 262.30p. Ocado was 1.4% lower at 672.86p.
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