Inflation up slightly but only to average level seen before start of cost-of-living crisis
Take-home sales at UK supermarkets rose by 3.8 per cent in the four weeks to 4 August 2024 compared with a year ago, according to Kantar.
Meanwhile, grocery inflation increased for the first time since March 2023 to 1.8 per cent, up from 1.6 per cent in July.
Fraser McKevitt, head of retail and consumer insight at Kantar, said: “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.”
It was a mixed picture on supermarket shelves with prices rising across 182 product categories, while 89 others fell.
“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,” said McKevitt.
“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 per cent, while sales of products at their usual price saw no increase.”
Despite the ongoing pressures on consumers, shoppers got into the party spirit in August to celebrate the summer of sport. “While people continue to make smart choices to manage their budgets, we should never underestimate Britons’ love of big occasions,” McKevitt pointed out.
Alongside sales rises in beer, wine and crisps, there were some positives in the fresh produce sector. Chilled prepared salads rose by 22 per cent in July and August, compared to the same time last year, and nuts were up 60 per cent on the Friday of the opening Olympics ceremony.
Sainsbury’s market share rose by 0.5 percentage points in the 12 weeks to 4 August, compared to the same period in 2023 – the supermarket’s largest year-on-year share gain since July 1997. Sainsbury’s was again the fastest-growing of the traditional supermarkets, with sales increasing by 5.2 per cent.
Meanwhile, Tesco has now maintained its streak of winning share every month since August 2023. Its hold of the market climbed by 0.6 percentage points to 27.6 per cent, while its sales jumped by 4.9 per cent.
Asda now takes 12.6 per cent share, while Morrisons’ stake stands at 8.6 per cent.
Lidl and Aldi both saw sales growth. Buoyed by a 7.8 per cent boost in sales, Lidl won an extra 0.4 percentage, taking its share to 8.1 per cent. Aldi’s market share is now 10 per cent.
Sales rose by 11.3 per cent at online-only retailer Ocado, continuing its six-month run as the fastest-growing grocer. Its share increased by 0.1 percentage points compared with last year, to reach 1.8 per cent.
Waitrose’s share increased by 0.1 percentage point to 4.5 per cent, and with sales also up by 4.5 per cent, it logged its strongest growth since November 2023.
Frozen specialist Iceland now holds a 2.3 per cent share, as shoppers there spent 4.1 per cent more at its tills, while Co-op takes 5.9 per cent of the market.
