Market research firm Kantar has revealed that supermarket prices rose across 182 product categories, while costs fell in another 89.
Grocery inflation stood at 1.8% for the four week period ending 4th August 2024, up from the previous year’s 1.6%, with Kantar seeing prices rising fastest in markets such as chocolate confectionary. Take-home sales rose by 3.8% in the four weeks.
Fraser McKevitt, head of retail and consumer insight at Kantar, commented: “Having reached its lowest rate in almost three years in July, August saw inflation nudge up again slightly. While this is noticeable following 17 straight months of falling rates, it actually marks a return to the average levels seen in the five years before the start of the cost-of-living ‘crisis’.”
Kantar described supermarket pricing as a “mixed picture”, with prices rising across 182 product categories as the costs in 89 others fall. For example, Kantar found that baked beans were now 5% cheaper than the year prior.
McKevitt said: “With this kind of pricing spread, shoppers will find that the type of product they’re putting in their baskets will really dictate how much they pay. They’re continuing to take advantage of the wide range of promotions being offered by the grocers to help keep the price of shopping down. Spending on deals rose by 15%, while sales of products at their usual price saw no increase.”
He continued: “While people continue to make smart choices to manage their budgets, we should never underestimate Britons’ love of big occasions.”
The start of the Olympics were marked with purchases of snacks, as nut sales increased by 60% and crisps rose by 10% on the Friday of the opening ceremony in Paris, up from the previous week.
Sales of burgers rose by 32% on the year, while chilled prepared salad sales rose by 22%. Ice cream sales were up 23% on the year.
Sainsbury’s earns largest market share gain since 1997
Sainsbury’s market share rose by 0.5% over the 12 weeks to 4th August, compared to the same period last year. Kantar found that this was its largest year-on-year share gain since July 1997, and said it was the fastest growing of the traditional supermarkets with sales increasing by 5.2%.
Tesco, which Kantar labelled “Britain’s largest grocer”, maintained its streak of winning share every month since August 2023. Its hold of the market reportedly climbed by 0.6% to reach 27.6%, while its sales jumped by 4.9%.
Asda now takes 12.6% share, while Morrisons’ stake stands at 8.6%. Discounters Lidl and Aldi both saw sales growth. Lidl won an extra 0.4% of the market to reach 8.1% share, while Aldi’s share reached 10%.
Sales rose by 11.3% at online-only retailer Ocado, continuing its six month run as the fastest growing grocer. Its share increased 0.1% to reach 1.8%.
Waitrose’s share increased by 0.1% to 4.5%. With sales up by 4.5%, it logged its strongest growth since November 2023. Frozen food retailer Iceland now holds a 2.3% share, as shoppers spent 4.1% more at its tills, while Co-op took 5.9% of the market.
