UK food price inflation slowed to 3.2%, the lowest level since November 2021, as prices for toilet paper, butter and milk fell and people spent more on store promotions.
The decline in the four weeks to April 14 marks the 14th consecutive month of declines and compares with the annualized rate of 4.5% at this time last month, retail analyst Kanter said. Slower food inflation was helped by a strong increase in promotional spending, with specials accounting for 29% of supermarket sales, the highest non-Christmas level since June 2021. Overall sales of takeout groceries increased by about 3%.
The deal helped shoppers save £1.3bn over four weeks, or £46 per household.
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Fraser McKevitt, Head of Retail and Consumer Insights at Worldpanel by Kantar said: “Over the past 11 months we have overseen a steady annual increase in promotions as retailers respond to consumers’ desire for value. Lower prices are helping reduce grocery inflation for shoppers at the checkout.”
An early Easter didn’t dampen seasonal sales, as spending on confectionery topped £100m for the first time in the seven days leading up to Easter Sunday. McKevitt said: “While higher prices played a role in achieving this record spending, the number of chocolate eggs sold in the seven days leading up to Easter was also 3% higher this spring than last year. 37% of consumers purchased one item during the week. . Hot cross buns were even more popular, eaten by 45% of Brits. ”
The growth in confectionery reflects a broader trend towards snacking in the UK. The past decade has seen an increase in almost every type of snack. Consumers ate 93 million more chocolates in the year to June 2023 than in the 12 months to June 2013. Fruit also entered the list of snack options, with 314 million more such products eaten between meals in 2023 than in 2013.
Ocado was again the fastest-growing grocer this month, with sales increasing by 12.5% in the 12 weeks to April 14, outpacing the overall online market, which grew by 6.8%. The retailer accounted for 1.9% of takeout grocery sales, up from 1.7% a year ago. Total online sales reached 12% of the total market for the first time since July 2022.
Tesco and Sainsbury’s, the UK’s two largest grocers, increased their market share to 27.4% and 15.3% respectively. Sainsbury’s sales rose 6.8% and Tesco’s sales rose 5.9%.
Lidl achieved a record market share of 8%, driven by sales growth of 9.1%. This also increased by 0.4 points from the previous year. His Aldi, a fellow discounter, regained his 10% market share it last held in September 2023, with sales up his 2.8%.
Mr Morrison’s share of the market remained flat at 8.7%, while cash-out spending increased by 3.8%. Waitrose and Iceland also maintained their market shares of 4.5% and 2.2% respectively. Both retailers recorded a 3.7% increase in sales. Asda accounts for his 13.4% of the market and the Co-op accounts for his 5.4%.
