Last month, households increased their grocery expenditures by stocking up on essentials for lunchboxes. Inflation in Great Britain’s supermarkets dropped.
Kantar, a retail analyst, says that the rate of inflation in grocery prices fell from 1,8% last month to 1,7% during the four-week period ending 1 September. However, nearly 60% of consumers are concerned about the cost of shopping.
Sales of cereal, fruit and fromage bars rose 14% in the last week of august compared to a year earlier, while chocolate biscuit bars increased by 12%.
Fraser McKevitt is the Kantar’s head of retail and consumer insights. “The demand for the lunchbox favorites has increased as the summer winds down and parents prepare to stock up before the start of the school year,” he said.
He said, however, that the overall confidence of shoppers in their financial situation had not increased. “Remembering the past two years is still strong. Nearly 60% of shoppers are still extremely or very concerned about rising food prices. “This is their second greatest financial concern, just behind home energy bills”, he said.
Retailers offer more deals in order to reduce the burden. The percentage of sales that are attributed to promotions has risen year over year for 16 consecutive months. McKevitt stated that more than half of grocery shopping trips involve shoppers taking advantage of some sort of offer. This proportion increases as the amount spent grows.
The prices of toilet paper, dog food, bottled colas, chilled fruit juices, and nutrition supplements are the fastest rising.
The value of grocery sales increased by 3% over a four-week period, compared to a year ago. This is down from the 3.8% increase last month.
Ocado has been the fastest-growing grocery store for seven consecutive months, with sales increasing 12.9% on an annual basis. Asda had the lowest sales, down 5.6%. The Co-op, the other major grocer, reported a 0.7% drop in sales.
Aldi is a German-owned retailer that sells budget goods. said Monday that the slowdown in sales was due to the fact that big chains like Tesco and Sainsbury’s had won back some customers by promising Aldi would match their prices on certain items.
Tesco, the UK’s largest retailer, saw sales increase by 5.3%, while Sainsbury’s also recorded a 5.7% growth.
Morrisons sales were up by 2,7%, while Waitrose’s rose by 4%. Lidl’s sales increased by 9.1% while Aldi only grew by 1.3%.
Retailers await the autumn budget of the chancellor on 30th October to see if it will affect household income and expenditure.
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