Britons' enthusiasm for chocolate and their inclination towards seeking discounts have been key drivers in the consistent decrease of grocery price inflation as outlined in the recent findings from Kantar. Fraser McKevitt, head of retail and consumer insight at Worldpanel by Kantar, highlighted a noticeable change in consumer spending patterns, with a noteworthy 29.3% of supermarket sales attributed to discount purchases – a figure that surpasses levels seen outside the holiday season since June of the previous year.
McKevitt further pointed out the sustained growth in promotions over an eleven-month period as retailers respond to the growing consumer demand for value. These deals have resulted in substantial savings for shoppers, estimated at around £1.3 billion in the latest four-week period, averaging nearly £46 per household. The focus on promotions along with price decreases in various categories like toilet tissue, butter, and milk has collectively contributed to a decline in grocery inflation experienced at the checkout counters.
With the Easter season further boosting supermarket sales, there was a surge in demand for chocolate eggs, leading to increased consumption of chocolate confectionery. Kantar's data shows a significant uptick in chocolate consumption, with 93 million more instances recorded in the year leading to June 2023 compared to the previous decade. Fruits have also seen a rise in popularity as a snack choice among Britons, with 314 million more fruit pieces consumed between meals in 2023 compared to 2013.
Amidst intense competition within the supermarket industry, loyalty programs and price-matching initiatives have become essential strategies for retaining customers. Online retailer Ocado, in collaboration with Marks and Spencer, has emerged as the fastest-growing grocer, with sales surging by 12.5% in the period of 12 weeks up to 14 April, surpassing the overall online market growth of 6.8%. Major players like Tesco and Sainsbury's have augmented their market shares, both securing a 0.4 percentage point increase. Lidl achieved a record 8.0% share, driven by a sales growth of 9.1%, while rival discounter Aldi regained a 10.0% market share accompanied by a 2.8% sales increase. This competitive environment highlights the ongoing battle for consumer attention and loyalty in the UK's grocery sector.