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(Alliance News) - UK grocery price inflation calmed once again, market research from Kantar showed on Tuesday, while supermarket sales got a boost from more summer staples such as hay fever medication and strawberries moving through the tills.
Kantar said grocery price inflation ebbed to 14.9% in the four weeks to July 9. It is the fourth-successive month the annual rate of grocery price rises has abated in the UK, and Kantar noted the latest slowdown in inflation, fading from 16.5% the prior month, is the most significant since its peak of 17.5% in March.
"Grocery price inflation has now been falling for four months in a row. That will be good news for many households although, of course, the rate is still incredibly high. The change comes as spending on promotions has gone up for the first time in two years, now accounting for just over a quarter of the total market," Kantar analyst Fraser McKevitt said.
"One of the biggest shifts we've seen in this area is retailers ramping up loyalty card deals like Tesco's Clubcard Prices and Sainsbury's Nectar Prices. This could signal a change in focus by the grocers who had been concentrating their efforts on everyday low pricing, particularly by offering more value own-label lines."
Total sales in the full 12 weeks of the survey to July 9 rose 11% to GBP33.24 billion from GBP30.03 billion a year earlier.
"The first two weeks of July mean strawberry and cream for many and this year didn't disappoint as record numbers queued to watch the action at SW19," Kantar's McKevitt added, referring to the annual tennis tournament at Wimbledon in London.
"Spending on strawberries and fresh cream shot up by 16% and 13% compared to last year. Shoppers will have been pleased, however, to see that the traditional treat hasn't hit their pockets too hard this month, with the average price for a pack of strawberries up by just one penny versus last summer."
McKevitt added: "Plenty of us grabbed the chance to enjoy some outdoor dining with volume sales of barbecue classics like chilled burgers rising by 7% and chilled dips by 5%. Our changeable weather has been less enjoyable for others though and sales of hay fever remedies grew by 16% over the past month as people dealt with seasonal allergies."
Tesco PLC remained the dominant grocer by UK market share, though it was German rival Aldi that reported the fastest growth once again.
Tesco sales rose 10% on-year during the 12-weeks, though its market share faded slightly to 27.0% from 27.1%.
J Sainsbury PLC saw sales climb 11% annually, but its market share was unmoved at 14.9%.
Online-only supermarket Ocado Retail, owned by Ocado Group PLC and Marks & Spencer Group PLC, had sales rise 2.0%. Its market share slipped to 1.7% from 1.8%, however.
Aldi's sales jumped 24% year-on-year and its market share improved markedly to 10.2% from 9.1%. Sales for compatriot Lidl surged 22% and its share of the UK market climbed to 7.7% from 7.0%.
The Kantar survey is based on purchasing habits of 30,000 "demographically representative" households in Great Britain.
By Eric Cunha, Alliance News news editor
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