Grocery price inflation highest in 10 years

Grocery price inflation hit 5.2 per cent this month, the highest level in a decade, according to figures from Kantar.

The research found that consumers are turning to own label products, which now account for over 50 per cent of all spending.

It also revealed that retailers are moving away from ‘round pound’ prices, with the percentage of packs sold at £1 to £3 falling by 2.3 per cent over the past 12-months.

“More and more we’re going to see consumers and retailers take action to manage the growing cost of grocery baskets,” said Fraser McKevitt, head of retail and consumer insight at Kantar. “Consumers are increasingly turning to own label products, which are usually cheaper than branded alternatives.
“Own label sales are down in line with the wider market but the proportion of spending on them versus brands has grown to 50.6 per cent, up from 49.9 per cent this time last year.”

Supermarket sales

During the three months to 20 March, supermarket sales were down by 6.3 per cent – the first annual decline in shopping trips for 12 months.

However, sales were still up by 0.7 per cent in comparison to two years ago.

Aldi achieved a record market share of 8.6 per cent over the 12-week period and Lidl matched its best market share at 6.4 per cent. Both budget retailers saw sales jump by 3.6 per cent.

“It’s no surprise that sales are down over the latest period as consumers are now more confident eating out of the home again,” added McKevitt. “What we’re really starting to see is the switch from the pandemic being the dominant factor driving our shopping behaviour towards the growing impact of inflation, as the cost of living becomes the bigger issue on consumers’ minds.”

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