19th Jul 2022 08:47
(Alliance News) - UK grocery price inflation neared double-digits in recent weeks while supermarket sales nudged up for the first time in over a year, according to figures from data analytics firm Kantar.
UK supermarket sales rose by 0.1% in the 12 weeks to July 10, the first time the market has registered growth since April 2021.
At the same time, supply chain issues pushed up costs across the industry, resulting in like-for-like grocery price inflation of 9.9% over the past four weeks. For the 12-week period, inflation was 8.1%, meaning price growth has accelerated in recent weeks.
"Prices are rising fastest in markets such as dog food, butter and milk," noted Kantar.
By supermarket, Tesco PLC was resilient over the 12-week period, its market share steady at 27.1% and sales up 0.1%, in line with the broader market trend.
J Sainsbury PLC saw its market share edge down to 14.9% from 15.2%, however, and sales fell 2.2%. Online-only grocer Ocado Group PLC's market share was steady at 1.8% and sales rose 0.7%.
Former London listing Morrisons fared particularly badly, with sales dropping 6.7% and its market share ebbing to 9.4% from 10.1%. Waitrose sales tumbled 6.3% and its market share slipped to 4.6% from 5.0%.
The standout performers were German discounters Aldi and Lidl, growing sales by 11% and 14% respectively.
"Over 67% of people in Britain shopped in either an Aldi or a Lidl in the past 12 weeks, with 1.4 million additional households visiting at least one of the discounters in the latest three months compared with last year. Both retailers reached a new market share high over the past three months. Lidl now holds 7.0% of the market while Aldi climbed to a 9.1% share," said Fraser McKevitt, head of retail and consumer insight at Kantar.
Shoppers have been adjusting their behaviour as grocery prices rise.
"People are increasingly turning to own-label products to drive down the cost of their weekly shop. Supermarkets' own lines are growing by 4.1% this period, while sales of branded items have fallen by 2.4%," he said.
By Lucy Heming; [email protected]
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