Grocery price inflation in the UK fell to 1.6% in the four weeks to 7 July, its lowest level since September 2021, new data from Kantar has found.
The drop in inflation coincided with the fastest rise in monthly footfall seen this year, Kantar noted, with UK shoppers making 2% more trips to the supermarket than they did in the corresponding period last year, driven, in part by the Euro 2024 football tournament.
Sales of branded products increased by 3.6% in the period, outpacing private label, which grew by 2.7%.
Summer Shopping
The relatively subdued summer weather has also played a part in what shoppers are purchasing, as Fraser McKevitt, head of retail and consumer insight at Kantar, notes, “We’re still waiting for the great British summer to break through the clouds, and we’re seeing the effects of that in our shopping baskets. Over the past three months, sales of cold and flu treatments jumped by 35%, while sun cream dipped by 10% compared with last year, when we were enjoying the warmest June on record.
"Some shoppers aren’t letting the disappointing weather dull their glow, however, pushing up sales of artificial tan by 16%.”
Supermarket Performance
In terms of the performance of the UK's leading supermarket chains, Ocado was once again the fastest-growing grocer (albeit off a low base), with sales up 10.7% over the 12 weeks to 7 July. The online-only retailer now holds 1.8% of the market.
As regards the UK's leading supermarkets, Tesco now holds 27.7% of the market – a 0.7 percentage point increase versus last year – following a 4.6% increase in sales.
Sainsbury's stands on 15.3% market share, following a 4.7% increase in sales in the period to 7 July, while Asda holds 12.7%, with the grocer seeing a 5.3% decline in sales.
With regard to the discounters, while Aldi (10.0%) boasts a stronger market share than Lidl (8.1%), the latter was a strong performer, seeing sales rise 7.8%.
