Poor Weather Dampens Summer Spending as Grocery Inflation Slows in UK

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Poor Weather Dampens Summer Spending as Grocery Inflation Slows in UK

The Impact of Poor Weather on UK Grocery Shopping

Despite a decline in grocery price inflation, recent poor weather in the UK has impacted consumer behavior, leading to a decrease in supermarket shopping and traditional summer purchases.

According to a report by Kantar, supermarket prices in the four weeks to June 9th were 2.1% higher than the previous year, down from May's 2.4% inflation rate. This marks the 16th consecutive month of slowing price rises. Kantar noted that costs are falling in nearly a third of the categories it monitors, including toilet tissue, butter, and milk.

However, despite the positive signs in inflation, the cost of living crisis continues to impact consumers. 22% of households reported struggling to cover expenses or just making ends meet.

The wet weather has also played a role in consumer behavior. Compared to last year, sales of sun care items and prepared salads have decreased by 25% and 11%, respectively. Conversely, sales of fresh soup have jumped by almost 24%.

Supermarkets and pubs are hoping for a boost in spending during the Euro 2024 tournament, with promotions on beer and lager already increasing to over 40% in the last four weeks.

In terms of market share, Tesco remains the UK's largest supermarket with a 27.7% share, followed by Sainsbury's (15.4%), Asda (14.2%), and Morrisons (10.1%). Ocado has emerged as the fastest-growing grocer for the fourth consecutive month, with a 10.7% increase in sales.

Overall, the UK grocery sector is facing a complex landscape with both positive and negative factors at play. While inflation is slowing down, the cost of living crisis and recent poor weather are impacting consumer behavior. The upcoming Euro 2024 tournament could provide a boost to spending, but it remains to be seen how the rest of the summer will unfold.