New data from Kantar shows that grocery price inflation fell for the seventh month in a row to 11%, the lowest it has been since July 2022.
For the four weeks to 1st October 2023, grocery price inflation fell for the seventh consecutive month to 11%, as take home grocery sales in the same period rose by 9.1% compared with last year.
Tom Steel, strategic insight director at Kantar, said: “Grocery price inflation is still very high, but shoppers will be relieved to see the rate continuing to fall. For the first time since last year, the prices of some staple foods are now dropping and that’s helping to bring down the wider inflation rate.
“Dairy was one of the categories where costs really shot up last autumn but the average price paid for a 250g pack of butter is now 16p less than 12 months ago.”
Looking for value in the supermarket
Lidl was the fastest growing retailer in September, with sales up 15.2%. This is the first time that Lidl has seen the fastest growth since April 2023, and it now has a market share of 7.6%, up 0.5% year-on-year (YoY). Aldi sales were up 14.9%, and its total market share hit 9.9%, up 0.6% YoY.
Sainsbury’s increased sales by 9.1% YoY, reaching a market share of 14.8%. Asda and Morrisons now hold 13.7% and 8.6% of the market share respectively.
Total online trips to Waitrose increased YoY for the first time this month since December 2021 by 3.1%. The retailer has a 4.6% market share with sales growth at 5.3% for the latest period.
Co-op’s market share sits at 6.1% with sales up 3.3%. Iceland’s sales rose 2.8%, while Ocado saw sales grow by 9.6% to take 1.7% of the market.
Steel said: “Supermarkets are looking at all the different ways they can deliver value at the tills and while the emphasis for some time has been on everyday low prices, the retailers are starting to get the deal stickers out again.
“Spending on promotions made up over a quarter of all sales in the latest 12 week period at 26.5%, the highest level since June 2022.
“Tesco, in particular, has been driving the increase, with some positive results. The nation’s biggest supermarket saw sales rise by 9.2% over the latest 12 weeks, with its market share edging up by 0.4% to 27.4%.
“Brands have also done well. Branded promotion sales hit their highest rate since January this year, helping the category grow sales by 7.3% across the 12 week period and narrow the gap with own-label lines, which grew by 10.1%.”
Summer staples continue to see substantial sales
Steel explained the impact the warmest September on record had on summer sales: “Sunnier weather last month meant the barbecues stayed out of sheds for another few weeks. Shoppers made the most of the higher than average temperatures, with volume sales of ice cream, burgers and dips shooting up by 27%, 19% and 10% respectively.
“Christmas seemed further away for many with fewer people buying Christmas puddings and seasonal biscuits as volume sales were down by 14% and 29% versus this time last year.”
