Britons' Love for Chocolate and Discounts Drive Down Grocery Inflation
New figures from Kantar reveal that Britons' love for chocolate and their penchant for seeking out discounts have played a key role in driving down grocery price inflation for the fourteenth consecutive month.
The latest data shows a significant shift in consumer spending habits, with a notable increase in discount purchases. These purchases now account for 29.3% of supermarket sales, the highest level outside of the festive season since June 2021.
Fraser McKevitt, head of retail and consumer insight at Worldpanel by Kantar, attributes this trend to the steady rise in promotions over the past 11 months. Retailers are responding to consumers' desire for value, and these deals have translated into substantial savings for shoppers. In the latest four-week period, an estimated £1.3 billion was saved, equating to nearly £46 per household.
The emphasis on promotions, coupled with price decreases in categories such as toilet tissue, butter, and milk, has contributed to a reduction in the rate of grocery inflation at the checkout.
Easter festivities further bolstered supermarket sales, driven by increased demand for chocolate eggs. Kantar reports a surge in chocolate confectionery consumption, with 93 million more instances recorded in the year to June 2023 compared to the preceding decade.
Fruit has also gained traction as a popular snack choice among Britons, with 314 million more fruit pieces consumed between meals in 2023 than in 2013.
Amidst fierce competition among supermarkets, loyalty cards and price-matching schemes have become integral tools for retaining customers. Online retailer Ocado, in partnership with Marks and Spencer, stands out as the fastest-growing grocer, with sales surging by 12.5% in the 12 weeks to 14 April, outpacing the total online market growth of 6.8%.
Tesco and Sainsbury's, Britain's largest grocers, have bolstered their market shares, each gaining 0.4 percentage points. Lidl achieved a record 8.0% share, fueled by sales growth of 9.1%, while fellow discounter Aldi reclaimed a 10.0% market share, reflecting a 2.8% sales increase. This competitive landscape underscores the ongoing battle for consumer attention and loyalty in the UK's grocery sector.