According to the latest data from Kantar, grocery price inflation has decreased for two consecutive months and now sits at 17.2% for the four weeks ending 14th May 2023. In comparison to the same period last year, take-home grocery sales rose by 10.8%. Head of retail and consumer insight at Kantar, Fraser McKevitt, stated that although this drop is welcome news for shoppers, the grocery price inflation rate is still alarmingly high. “This could add an extra £833 to the average household’s annual grocery bill if consumers don’t shop in different ways,” he added.
Shoppers are pursuing more cost-effective options, primarily own-label products, which have grown by 15.2% this month, compared to branded products that have grown by 8.3%. Fraser McKevitt pointed out that the gap between own-lines and brands is gradually narrowing in most stores, assisted in some cases by loyalty discounts. For instance, the recently launched Nectar prices scheme boosted the sales of brands purchased on deal in Sainsbury’s, increasing them by more than a quarter this period.
Recently, supermarkets have been competing fiercely to provide value to shoppers. The average cost of four pints of milk fell by 8 pence in the dairy aisle, down to £1.60 from £1.30 last year, which is considerably higher but still small savings on staple products like milk to draw customers in. During the additional bank holiday of the King’s coronation, grocery sales skyrocketed by 16%, adding an extra £218 million to the registers. Sales of sparkling and still wines, which climbed by 129% and 33% respectively, were primarily driven by demand rather than price increases.
Waitrose saw the largest increase in sales, rising by 4.8% over the 12 weeks, the highest rate of growth since April 2021, with now 4.6% market share. Aldi, on the other hand, was the fastest-growing grocer, with sales increasing by 24.0%, while Lidl saw a sales increase of 23.2%. The two discounters now account for 17.8% of the market, with Aldi’s share at 10.1% and Lidl’s at 7.7%. Asda increased sales by 10.6%, and its market share now stands at 13.9%, a rise of 0.1% when compared to the same 12 weeks last year. Sales were boosted by its Just Essentials range, launched 12 months ago, with nearly two in five Asda baskets containing at least one of these value items in May.
Morrisons earned an 8.7% share this period, marking its third consecutive period of sales growth, although the increase was more muted compared to others at 0.6%. The grocer is hoping the relaunch of its ‘More Reasons to Shop’ strapline would help it continue its positive momentum. Tesco’s sales increased by 8.9%, with growth across its convenience stores, large-format supermarket, and online channels. It now holds 27.1% of the market. Sainsbury’s sales rose by 10.5%, and its market share held steady at 14.8%. Convenience specialist the Co-op upped its sales by 2.9%, Iceland by 9.1%, and online-only retailer Ocado by 5.6%.
