Within the 4 weeks to the nineteenth February 2023 Kantar has reported that grocery worth inflation is now at 17.1% – the very best stage it has ever recorded.
Nevertheless, it’s not all doom and gloom as supermarkets and consumers are seen to be adapting to handle rising costs.
Fraser McKevitt, head of retail and client perception at Kantar defined: “With Valentine’s Day falling on a Tuesday and lots of feeling the pinch, some consumers determined to point out their love at dwelling this February. Grocery store gross sales of steak rose by 1 / 4 within the seven days to 14th February in comparison with the earlier week, whereas chilled prepared meal gross sales have been almost one third larger.”
General take-home grocery gross sales elevated by 8.8% through the 4 weeks and by 8.1% over the 12-week interval.
McKevitt continued: “Buyers have been going through sustained worth rises for a while now and this February marks a full yr since month-to-month grocery inflation climbed above 4%. That is having a big effect on individuals’s lives.
“Our newest analysis exhibits that grocery worth inflation is the second most vital monetary situation for the general public behind power prices, with two-thirds of individuals involved by foods and drinks costs, above public sector strikes and local weather change. One quarter say they’re struggling financially, versus one in 5 this time final yr. The numbers converse for themselves. If individuals don’t change how they purchase their groceries, households are going through an £811 improve to their common annual invoice.”
So, how are supermarkets and consumers adapting to handle rising costs? McKevitt defined: “The battle to supply finest worth for customers continues on this intensely aggressive sector, notably as the standard retailers look to guard market share from the discounters. Personal label ranges have been one apparent focus and consumers have constantly purchased them over manufacturers since February final yr. Gross sales of those traces are up by 13.2% this month, properly forward of branded merchandise at 4.6%, a development that exhibits little signal of stopping.”
Retailer market shares
Kantar additionally stories that Aldi pushed its market share to a brand new document this era hitting 9.4%. It stays the quickest rising grocer, with gross sales up by 26.7%.
It was carefully adopted by Lidl which elevated gross sales by 25.4%. Lidl’s share of the market now stands at 7.1%.
Comfort retailer Co-op elevated gross sales by 3.4% whereas independents and symbols have been up by 1.8%.
Frozen meals specialist Iceland additionally gained share, taking 2.4% of market gross sales, up from 2.3% final yr as spending by its tills elevated by 10.8%.
Ocado put in a powerful efficiency, bucking the general development in on-line gross sales. Whereas on-line fell by 0.9% over the 12 weeks, the digital specialist grew gross sales by 11.3% to attain its largest ever market share of 1.9%.
Tesco edged barely forward within the battle between Britain’s largest retailers, with gross sales up by 6.6%.
Sainsbury’s and Asda have been simply behind with gross sales rising by 6.2% and 5.9% respectively.
Waitrose returned to progress, nudging up gross sales by 0.7%. It has a market share of 4.7%.
Morrisons’ gross sales decline of 0.9% was its finest efficiency since Could 2021.
The graphic under, courtesy of Kantar, exhibits the total knowledge.