Supermarket sales in the UK have grown at the fastest pace since June 2014, according to Kantar Worldpanel data for the 12 weeks ended 26 February.
Sales were up 2.3% compared to the same period in 2016. Like-for-like inflation has also increased to 1.4%, which constitutes a 'fairly minimal' increase, according to the firm.
Costs for essentials such as fish, tea and butter rose by more than 5% during the period. Fruit and vegetables also saw a price jump, whereas prices for other items, such as crisps, bacon, and eggs saw a decline.
The Big Four
As head of retail and consumer insight at Kantar Worldpanel, Fraser McKevitt, explained, "While consumers may be starting to feel a very slight pinch, increased inflation has led to overall market growth.
"Simultaneously, combined sales at the UK’s four largest supermarkets increased by 0.5% year on year.
"This is a timely reminder that despite the huge interest in the discounters during recent years the big four remain a force to be reckoned with: they still hold just over 70% of the market, with almost 99% of the population shopping in a Tesco, Sainsbury’s, Asda or Morrisons during the latest quarter."
Morrisons outpaced the market, with a sales boost of 2.6% equalling its most rapid growth in five years.
Tesco saw sales rise for the sixth period in a row, but also experienced a dip of 0.5 percentage points to 27.9% in market share.
Ailing Asda saw sales fall during the 12 week period, but at -0.8%, it was the retailer's best sales results since November 2014.
Vs. The Discounters
As for the discounters, Lidl was crowned the fastest growing supermarket in the UK during the last 12 weeks, with an increase in sales of 13%. Rival Aldi was right on its heels (+12.9%), reaching a milestone market share of 6.3%.
Shopping trends also experienced a change in the period examined, with the proportion of groceries sold on sale decreasing to 34.3%, the lowest in nearly eight years. The most marked change was a shift away from multi-buy promotions, with customers shelling out half a billion less on these types of deals.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Karen Henderson. To subscribe to ESM: The European Supermarket Magazine, click here.
