Retail

UK Grocery Inflation Falls Below 3% – Kantar

By Reuters
UK Grocery Inflation Falls Below 3% – Kantar

Grocery inflation in the UK fell for the 15th month in a row in May to reach 2.4% – its lowest level since October 2021, according to Kantar.

The market researcher put grocery inflation at 2.4% for the four weeks ending 12 May, down from 3.2% in the previous four-week period.

It noted, however, that prices were still rapidly increasing for products such as chilled fruit juices and drinks, sugar confectionery and chocolate.

Official data from the UK published on 17 April showed consumer price inflation fell to 3.2% in March, driven by a slowdown in food inflation to 4%.

Prime Minister Rishi Sunak has sought credit for reducing inflation by half during his tenure, though there has been little sign of an opinion poll boost for the struggling Conservative Party.

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According to Kantar, take-home grocery sales rose by 2.9% over the four week period year-on-year.

Market Leaders

In the 12 weeks to 12 May, online retailer Ocado once again took the title of fastest-growing retailer, with 12.4% growth.

Tesco still holds the market lead, with 27.6% of market share and sales growth of 5.6%.

Number-two retailer Sainsbury’s also saw 5.6% growth, holding 15.1% of market share.

Asda retains its number-three position with 13.1% market share.

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However, it lagged behind competitors with sales down 2% and its markets share down 80 basis points on the year.

Discounters Aldi and Lidl saw growth of 2.2% and 9.4% respectively.

Aldi holds 10% of market share in the number-four spot, followed by Morrisons with 8.6% and growth of 3.1%.

Lidl came next, reaching an all-time market share high for the discounter with 8.1%.

Following Lidl was the Co-operative (5.4%), Waitrose (4.6%), Iceland (2.3%), and Ocado (1.8%).

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Kantar noted that with the Euro 2024 soccer tournament and the Olympic Games this summer, sales could increase in the summer months particularly in categories such as alcohol.

“Especially if it’s paired with warmer temperatures,” said Fraser McKevitt, head of retail and consumer insight at Kantar.

“This year’s summer of sport could deliver a welcome boost for the sector.”

Read More: Asda Reports Slow Sales In First Quarter

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