Easter boosts grocers sales as price inflation ticks higher

(Sharecast News) - Supermarket sales jumped in April, industry data showed on Tuesday, as shoppers shrugged off rising food inflation to stock up for Easter.

According to the latest data from Kantar, take-home sales jumped 6.5% in the four weeks to 20 April, Easter Sunday. Easter fell unusually late this year.

Grocery inflation, meanwhile, edged up to 3.8%, up on last month's 3.5% and well above October's low of 1.4%. The fastest-rising prices were seen in butter and spreads, coffee and chocolate.

However, despite chocolate confectionary prices surging 17.4%, spending was up 11% compared to the four weeks to Easter last year.

Among individual grocers, sales sparked 6% at Tesco in the 12 weeks to 20 April, giving the UK's largest supermarket a market share of 27.8%. Sales rose 4.4% at J Sainsbury, taking its market share to 15.3%.

Discounters Aldi and Lidl also saw rapid growth, with sales 5.9% and 10.1% higher respectively, while online-only Ocado Group reported a 11.8% hike, the biggest increase across all grocers.

The three now have market shares of 11.0%, 8.0% and 1.9% respectively.

Asda, with 12.3% of the grocery market, was the only chain to see sales decline, down 3.8% over the period.

Fraser McKevitt, head of retail and consumer insight, said: "The grocers have been sharpening their pricing strategies to stay competitive in the fight for footfall. They've invested in price cuts, which were the main driver of promotional growth. Often linked to loyalty cards, spending on these deals grew by £347m."

Overall, spending on promotion reached 29.7%, the highest level seen so far this year, Kantar noted.