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(Correcting end of recent four-week period for price inflation to November 27.)
(Alliance News) - The rate of grocery price inflation in the UK has slowed for the first time in nearly two years, the latest market survey from Kantar revealed on Tuesday.
In the 12 weeks to November 27, take-home grocery sales rose by 5.9% against the previous year. This marks the fastest level of growth since March, 2021.
Meanwhile, in the four-weeks to November 27, price inflation eased to 14.6% from the record high 14.7% in the four-weeks to October 30. This marked the first slowdown in price rises in 21 months.
However, food price inflation remains near record highs. Prices are rising the fastest in product areas such as butter, milk, and dog food.
Kantar noted that consumers are leaving their seasonal purchases later this year, as they try to manage budgets in the run up to Christmas Day.
"Sales of mince pies, Christmas puddings and Christmas confectionery are worth 2% more than last year, but this rise can largely be put down to higher prices. If we look at the amount of people buying these items and the overall number of purchases made, then sales are actually down on 2021," said Fraser McKevitt, head of retail & consumer insight at Kantar.
Kantar's data is based on over 75,000 identical products compared year-on-year in the proportions purchased by British shoppers. It is a 'pure' inflation measure in that shopping behaviour is held constant between the two comparison periods.
Kantar noted that as the men's FIFA World Cup tournament continues, the excitement around England's performance and Wales's first cup showing in 64 years hasn't translated into rapid sales rises at the supermarkets.
McKevitt explained: "We haven't seen a big World Cup effect – at least not yet. Take-home beer sales nudged up slightly in the last four weeks, covering the first week of the tournament, by 5% to GBP230 million, but mostly due to increased prices. Many people are taking the chance to enjoy a social pint while watching the games in bars and pubs, whereas last year we were in the middle of a Covid resurgence so consumers were limiting their movements and going out less."
Own-label sales jumped by 12% in the past four weeks, while the very cheapest value own-label ranges soared by 46% as shoppers look for ways to reduce costs amid the cost-of-living crisis, Kantar said.
In addition, with economic forecasters warning of a recession, discount food retailers Aldi and Lidl saw their market share grow, a trend which has been seen across the year.
Aldi was the fastest growing UK grocer in the latest period, with sales increasing by 24% year-on-year to hold 9.3% of market share, up from 7.9% the previous year.
Low-budget peer Lidl wasn't far behind, with sales growing by 22% against the prior year, taking its market share to a new high of 7.4% from 6.4% previously.
Among the traditional 'Big Four' supermarkets, Tesco PLC stayed the largest retailer, with a market share of 27.6%. Though its market share was down from 27.7% last year, Tesco still saw sales grow by 3.9%.
Asda led the way for sales growth among the Big Four, maintaining an overall market share of 14.0% as sales grew by 6.1% year-on-year.
J Sainsbury PLC's saw its market share slip to 15.2% from 15.4%, as it recorded sales growth of 4.3%.
Wm Morrison Supermarkets lagged behind, recording a decline of 4.7% in sales against the previous year and a drop in market share to 9.0% from 10.0%.
Online retailer Ocado Group PLC's sales were down 0.2% versus last year, as its market share slipped to 1.7% from 1.8%.
Tesco shares were trading down 0.2% at 229.60 pence in London on Tuesday morning. Sainsbury was down 0.1% at 225.10p. Ocado was down 1.2% at 655.00p.
By Sophie Rose, Alliance News reporter
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