24th May 2022 09:25
(Alliance News) - UK supermarket sales have weakened in recent weeks, while grocery inflation accelerated to the highest level since May 2009, figures on Tuesday showed.
According to the latest Kantar survey, UK grocery sales declined 4.4% to GBP29.91 billion in the 12 weeks to May 15 from GBP31.30 billion a year before.
The sales decline eased in the closing weeks of the survey, however.
"Sales declined more softly over the past month and dipped by just 1.7%, the market's best performance since Christmas as the nation looks ahead to the Platinum Jubilee weekend," Kantar said.
"Despite the squeeze on budgets, the Platinum Jubilee is expected to bring with it bumper supermarket sales. Alcohol, soft drinks, barbecue foods, and desserts are all predicted to be particularly popular over the long weekend."
The UK will have a four-day holiday weekend starting Thursday, June 2 to celebrate the Queen's 70-year reign.
The Kantar survey highlighted the rampant inflation the UK consumer is facing. For the full 12 weeks, grocery inflation stood at 5.7%, accelerating from 4.8% in the 12 weeks to April 17.
Over the past four weeks alone, grocery inflation raced to 7.0%, the highest level since May 2009.
Kantar analyst Fraser McKevitt commented: "People are really feeling the squeeze at the supermarket tills and they're having to stretch their budgets further to accommodate rising prices. To put the most recent numbers into context, if you were picking up supplies for a family fry up over the long weekend with toast, eggs, sausages, bacon, and beans it would cost you GBP6.83 – that's a significant 40p increase on last year."
During the 12 weeks, Tesco PLC sales fell 3.1% yearly to GBP8.20 billion. Its market share, however, climbed to 27.4% from 27.0%.
"This is the seventeenth month in a row Britain's largest supermarket has gained share, its longest streak since 2007," Kantar said.
J Sainsbury PLC sales dropped 6.7% year-on-year to GBP4.42 billion, with its share of the UK grocery market fading to 14.8% from 15.1%.
Online only grocer Ocado Group PLC saw sales fall 8.0% to GBP517 million, with its market share edging down to 1.7% from 1.8%.
Asda and former London listing Wm Morrison Supermarkets, which alongside Tesco and Sainsbury's make up the UK's 'big four', also suffered market share falls.
Asda's market share fell to 13.8% from 14.4%, while Morrison saw its market share decline to 9.5% from 10.0%. Asda sales fell 8.7%, while Morrisons sales fell 9.5%.
While more traditional UK grocery names struggled, German discounters were on the up.
Lidl's market share improved to 6.9% from 6.2%, Aldi's rose to 9.0% from 8.1%. Their sales rose by 6.0% and 5.8%, respectively.
Tesco shares were down 0.5% in London on Tuesday morning. Sainsbury's was down 0.4% and Ocado down 1.5%.
By Eric Cunha; [email protected]
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