Food value inflation falls to lowest stage in over a yr 

Food price inflation is down for the sixth month in a row at 12.2 p.c – its lowest stage in additional than a yr. 

Prices throughout grocers had been 12.2 p.c greater than 12 months in the past for the 4 weeks to September 3, a slight lower from final month’s 12.7 p.c, analysts at Kantar have stated.

While this marks a major decline in progress tempo since its peak of 17.5 p.c in March, a majority of shoppers stay involved about rising supermarket payments. 

Fraser McKevitt, head of retail and shopper perception at Kantar, stated: “Grocery price inflation is down for the sixth month in a row, but 12.2 percent won’t be a number to celebrate for many households.

“Our information exhibits that 95 p.c of shoppers are nonetheless frightened concerning the affect of rising grocery costs, matched solely by their concern about power payments.

“After a full year of double-digit grocery inflation, it’s no surprise that just under a quarter of the population consider themselves to be struggling financially – although this is a very slight drop compared to May.”

According to Kantar’s information, low cost retailers have benefited most from the inflationary context, resulting in knock-on results on broader British procuring habits.

Mr McKevitt stated: “We’re now marking one year since Aldi became the fourth largest supermarket in Britain and alongside Lidl, it has made some of the biggest market share gains over the past 12 months as consumers continue their hunt for value. 

“This month, Aldi grew sales by 17.1 percent and Lidl by 16 percent.”  

Between them, Mr McKevitt stated the discounters now seize a extra sizeable 17.7 p.c of the sector.

Sales of own-brand merchandise elevated by 9.9 p.c in the course of the month and now represent “over half” of complete grocery gross sales, up from 48 p.c in August 2013. 

Mr McKevitt stated: “This is equivalent to a £3billion shift in sales away from brands. The discounter model of offering everyday low value and fewer promotions has also caught on in the wider market, with only 26 percent of spending now on deals compared with 38 percent 10 years ago.”

Elsewhere, customers have been “making the most” of Wilkos’ closing gross sales with its share of non-food groceries like toiletries, healthcare and family items leaping from 1.8 p.c in July to 2.3 p.c in August, Kantar stated. 

However, its gross sales have nonetheless declined in comparison with the earlier yr with shoppers turning to various shops as a substitute. 

Mr McKevitt stated: “Tesco, Aldi and the bargain stores, such as Poundland, B&M and Home Bargains, have been the biggest winners of customers switching spend away from Wilko.”  

Sainsbury’s and Tesco had been the fastest-growing conventional retailers this month, rising gross sales by 9.1 p.c and 9.3 p.c respectively. Meanwhile, 

Asda and Morrisons’ gross sales elevated by 5.1 p.c and two p.c respectively. Waitrose’s progress accelerated to five.6 p.c this month, and Ocado’s gross sales grew 4.3 p.c. 

Co-op gross sales had been up by 2.5 p.c versus a yr in the past, whereas Iceland’s gross sales rose by 4.3 p.c.