Consumers start to cut grocery spend
WARMER weather led to an increase in consumer footfall in the early summer, but the dark clouds of inflation still loom.
Over the 12 weeks to 12 June, Kantar found supermarket sales fell by 1.9%, which the firm said was the best market performance since October last year. Footfall was up by 3.4%.
This was despite grocery price inflation hitting 8.3% in the four week period to 12 June, its highest level in 13 years according to Kantar.
Fraser McKevitt, head of retail and consumer insight at Kantar, said: “Based on our latest data, the average annual grocery bill is on course to rise by £380.
“This is over £100 more than the number we reported in April this year, showing just how sharp price increases have been recently and the impact inflation is having on the sector.”
McKevitt added that more shoppers have swapped from branded items to own-label products. Sales of these lines, which were up 2.9%, were boosted by Aldi and Lidl’s strong performances.
NielsenIQ’s till data figures for the four weeks to 18 June also revealed that shoppers have been shifting to cheaper lines in response to the rising cost of living.
The firm recorded growth for frozen poultry (+12%), rice and grains (+11%), canned beans and pasta (+10%), and gravy/stock (+9%).
Mike Watkins, UK head of retailer and business insight at NielsenIQ, said: “Shoppers are starting to make different choices in how to compensate for their rising cost of living.
“For some households, the way to save money is to buy cheaper products and our analysis suggests that some of the increased cost of an overall basket can be mitigated in this way.”
