Grocery price inflation fell to 11%, its lowest rate since July 2022, as barbecue staples continue to make increased sales in the warmer weather, according to the latest data from Kantar.
It was the seventh consecutive month that saw grocery price inflation fall, dropping to 11% for the four weeks to 1st October 2023. Take-home grocery sales over the same period rose by 9.1% year-on-year (YoY).
Tom Steel, strategic insight director at Kantar, said: "Grocery price inflation is still very high, but shoppers will be relieved to see the rate continuing to fall. For the first time since last year, the prices of some staple foods are now dropping and that's helping to bring down the wider inflation rate.
“Sunnier weather last month meant the barbecues stayed out of sheds for another few weeks. Shoppers made the most of the higher than average temperatures, with volume sales of ice cream, burgers and dips shooting up by 27%, 19% and 10% respectively."
Supermarket sales increase
Steel said: “Tesco, in particular, has been driving the increase, with some positive results. The nation’s biggest supermarket saw sales rise by 9.2% over the latest 12 weeks, with its market share edging up by 0.4% to 27.4%."
The fastest growing retailer in September was Lidl, with sales up 15.2% and its market share up by 0.5% to hit 7.6%. Discounter Aldi's sales were up 14.9% seeing its total market share reach 9.9%, a 0.6% increase YoY.
Morrisons and Asda hold market shares of 8.6% and 13.7% respectively, and Sainsbury's saw its market share grow to 14.8% as its sales increased by 9.1% compared with last year.
Waitrose now has a 4.6% market share after total online shopping trips increased by 3.1% for the retailer, and Co-op currently holds a market share of 6.1%.
Iceland sales rose 2.8%, and Ocado grew sales by 9.6% to take 1.7% of the market.
Steel stated: "Spending on promotions made up over a quarter of all sales in the latest 12 week period at 26.5%, the highest level since June 2022.
"Brands have also done well. Branded promotion sales hit their highest rate since January this year, helping the category grow sales by 7.3% across the 12 week period and narrow the gap with own-label lines, which grew by 10.1%.”
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