Inflation affecting purchasing decisions
SHOPPERS are seeking better value from their baskets as inflation takes hold.
Kantar’s latest take-home grocery figures for the 12 weeks to 17 April found sales down 5.9% on the previous year.
Like for like grocery price inflation was also recorded at 5.9%, the highest level since 2011.
Fraser McKevitt, head of retail and consumer insight at Kantar, said there was already evidence of changing behaviour, as consumers seek to mitigate the impact of rising costs.
“We’re seeing a clear flight to value as shoppers watch their pennies. The level of products bought on promotion, currently at 27.3%, has decreased 2.7 percentage points as everyday low price strategies come to the fore.
“The major retailers are listening to shoppers’ concerns, with Asda launching its Just Essentials line, Morrisons announcing that it is cutting the price of many everyday goods, and Tesco locking in savings through its Clubcard strategy,” he said.
NielsenIQ also found evidence of shoppers managing basket spend in the face of rising costs.
Data for the four weeks to 23 April found Aldi and Lidl leading the grocery market in terms of growth, up 6.4% and 9.1% respectively, while Tesco was the only ‘big 4’ supermarket to gain market share.
Mike Watkins, UK head of retailer and business insight at NielsenIQ, said there could be more pricing activity in the weeks ahead, such as private label price cuts and more targeted promotions through loyalty schemes.
“It will be important for retailers and brands to adapt ranges and prices to help maintain sales momentum in Q2 and into the start of summer,” he said.