Grocery sales rose by 5.2% in the 12 weeks to 30 October, the fastest rate of market growth since April 2021, according to new Kantar data.
In addition, the figures show grocery price inflation has hit another record high since Kantar began tracking prices in this way in 2008, now sitting at 14.7%.
The data shows that consumers face a £682 rise in their annual grocery bill if they continue to buy the same items and 27% of all households now say they’re struggling financially, which is double the proportion recorded last November. Nine in ten of this group say higher food and drink prices are a major concern, second only to energy bills.
Kantar’s figures reveal own label sales have increased again by 10.3% in the past four weeks, as shoppers adopt different strategies to manage their budgets. The branded goods market grew far slower at 0.4%.
Fraser McKevitt, Head of Retail and Consumer Insight, Worldpanel Division, UK, said: “Food and drink spending is generally non-discretionary so it’s not easy for shoppers to cut back the amount they buy. Many are looking to reduce costs in other ways and the big shift to own label is still accelerating.
“While some of the rise will be down to price inflation, we can clearly see the trend in sales of the very cheapest value own label ranges, which are up by a whopping 42%. These items currently represent just under 3% of the market, although retailers have been adding new products in recent months, so it will be interesting to see if this continues.”
Kantar’s data shows Halloween sales were down compared with 2021, with just over one in ten households bought a pumpkin in October. In addition, Kantar says there’s clear evidence that the new regulations for products high in fat, sugar and salt are changing the way these items are sold. The proportion of confectionery bought on promotion during the month of October was 26%, down from 36% this time last year.
The figures also reveals that fewer people are stocking the cupboards for Christmas in October, instead preferring to wait until later in the year. This time last year two million consumers had already bought their festive Christmas pudding, but Kantar reveals that 32% fewer shoppers are doing that this time around, suggesting people are not trying to spread the cost of their purchasing.
Kantar reveals that Aldi was the fastest-growing retailer in the past four weeks, increasing its sales by 22.7% year-on-year to now hold a 9.2% market share. Lidl boosted sales by 21.5% to take its market share to a new record high of 7.2%.
In response to the data, Sue Davies, Which? Head of Food Policy, said: “The rocketing price of food is a real concern with millions of people skipping meals or struggling to put healthy meals on the table. It is essential that households get the support they need from the government and businesses amid the cost of living crisis.
“Supermarkets must ensure budget lines for healthy and affordable essential items are widely available across their stores. Promotions should be targeted at those most in need and people supported so they can easily compare the price of products to get the best value.”
