The take-home sales from the grocers have experienced a 7.4% rise compared to the same period in 2022. This marks a slight increase from the 6.5% growth reported last month. According to Fraser McKevitt, head of retail and consumer insight at Kantar, the recent data indicates a downward trend in grocery price inflation for the sixth consecutive month. However, he notes that the current inflation rate of 12.2% may still cause concern for many households. In fact, our data reveals that 95% of consumers continue to worry about the impact of rising grocery prices, parallel to their concerns about energy bills.
After enduring a year of double-digit grocery inflation, it comes as no surprise that nearly a quarter of the population perceives themselves as financially struggling, albeit with a slight decrease compared to May. Meanwhile, the discount retailers have benefited from this inflationary context, leading to ripple effects on the overall shopping habits of British consumers. McKevitt highlights the boost in own-label sales, which dominate the shelves of Aldi and Lidl. In the latest month, these sales grew by 9.9%, and supermarket lines now constitute over half of all consumer purchases, having increased from 48% in August 2013.
This shift towards own-label products represents a significant change, amounting to a £3 billion sales increase at the expense of branded items. Additionally, the discounter model’s appeal, founded on everyday low value and fewer promotions, has gained traction in the wider market. Today, only 26% of consumer spending is allocated to deals, contrasting with the 38% figure recorded a decade ago.
Among the more traditional retailers, Sainsbury’s and Tesco have experienced the highest growth rates this month. Sainsbury’s sales grew by 9.1%, while Tesco followed closely with a 9.3% increase. Tesco’s market share now stands at 27.2%, reflecting a 0.3 percentage point growth from the previous year, while Sainsbury’s holds 14.8%, up by 0.2 percentage points.
Asda maintains a market share of 13.8% and Morrisons holds 8.6%, with respective sales increases of 5.1% and 2.0%. Waitrose’s growth has accelerated to 5.6% this month, resulting in a 4.6% market share for the retailer. Similarly, Ocado witnessed an increase in sales growth from the previous month, now standing at 4.3%, while their market share has reached 1.6%.
Co-op experienced a sales growth of 2.5% compared to the previous year, solidifying the convenience retailer’s 6.1% market share. Iceland’s sales rose by 4.3%, capturing a 2.3% market share. Finally, the combined market share of symbols and independents rose from 1.5% to 1.8% year-on-year.
Overall, these statistics shed light on the current state of the grocery market, with grocers implementing various strategies to navigate the challenges posed by rising grocery prices and changing consumer preferences.
