Grocery price inflation in Great Britain has moderated to 4.5%, marking its lowest level since February 2022, according to recent findings by retail researchers. Despite this positive trend,
a significant portion of households, accounting for one in four, continue to grapple with financial challenges.
Waitrose and Ocado emerged as the sole grocers to attract new shoppers over the past three months, as revealed in the latest monthly data from analysts Kantar. The growth in sales of more expensive branded groceries surpassed that of supermarket own-label products. Notably, Waitrose experienced a growth rate of 3.9%, outpacing discounters like Aldi for the first time since 2021.
Fraser McKevitt, head of retail and consumer insight at Kantar, noted the substantial decline in grocery inflation from its peak of 17% in March 2023. However, despite this downward trajectory, a considerable proportion of British households continue to face financial strain, with 23% reporting financial struggles, consistent with figures observed in November last year.
Lidl maintains its position as the fastest-growing high street grocer, with sales climbing by 8.8%, buoyed by significant increases in baked goods and fresh produce. Meanwhile, promotional deals saw a notable uptick, with £605 million more spent on such offers compared to March last year. Additionally, nearly one-third of baskets across major retailers contained at least one product price-matched to a discount store.
Although branded goods are experiencing faster growth than own-label products, premium own-label lines at supermarkets have witnessed a robust increase of 16.1%, indicating a continued consumer preference for value-conscious options.
While prices of essential items like butter and milk have declined, there has been a notable rise in the cost of sugary sweets and chocolate confectionery ahead of the Easter season. Notably, sales of hot cross buns surged by 15% compared to the previous year, reflecting seasonal demand patterns. Photo by Mtaylor848, Wikimedia commons.