Take-home grocery sales rose by 4.8% in the 12 weeks to 2 October 2022 while grocery price inflation has hit another new peak, according to the latest figures from Kantar. Grocery inflation now stands at 13.9%, a record high since Kantar began tracking prices in this way during the 2008 financial crash.
“The cost-of-living crisis is still hitting people hard at the checkouts and this latest data will make tough reading for many,” said Fraser McKevitt, head of retail and consumer insight. “Based on our numbers, the average household is facing a £643 jump in their annual grocery bill to £5,265 if they continue to buy the same items. Taking that at a basket level, that’s an extra £3.04 on top of the cost of the average shopping trip last year which was £21.89.”
Sales of supermarket own label lines continue to grow as consumers move away from branded products. Own label sales increased by 8.1% this month, while branded items declined by 0.7%. Shoppers are also finding other ways to get the items they want for less. “People are pretty savvy at seeking out best value and retailers are expanding their ranges to help them do this,” said McKevitt.
For the fifth month in a row Lidl was the fastest growing grocer this period, pushing up its sales by 20.9% over the 12 weeks, marginally ahead of Aldi whose sales rose by 20.7%. Lidl’s share of the market is now 7.1%, up from 6.2% last year while Aldi moved to 9.3% from 8.0%.
“Asda led the way among the biggest traditional supermarkets, boosting sales by 4.5%,” said McKevitt. “It has done particularly well to attract new shoppers over the latest 12 weeks, bringing an additional 417,000 customers through its doors compared with last year. The retailer’s new Just Essentials range continues to help it drive growth with nearly two thirds of its 15.2 million shoppers picking up at least one item from the line.”
Sales at Sainsbury’s rose by 3.0% and at Tesco by 2.5%, while Morrisons saw sales fall by 3.9%. Both Iceland and Ocado grew by 5.3%, slightly ahead of the market to maintain their market shares at 2.3% and 1.6% respectively. Convenience retailer Co-op also held market share flat year-on-year at 6.4%, with its sales growing by 3.3%. Waitrose’s market share is now 4.7%.