Grocery sales on the up again, inflation down

The grocery market grew 2.8% in the 12 weeks to 22 June after a historic low of 1.7% last period, according to new data from researcher Kantar Worldpanel.

The figures from Kantar Worldpanel also revealed the lowest level of grocery inflation since October 2006, at 0.8%.

Fraser McKevitt, consumer insight consultant at Kantar, said: “The low grocery price inflation this period will be welcome news for household budgets. The outlook is positive as we predict continuing sub-1% levels into the near future, providing some relief for cash-strapped consumers.

Despite well-publicised falls in market share and sales, Tesco still leads the grocery sector, with a 28.9% share of the market, followed by Asda (17.1%), Sainsbury’s (16.7%) and Morrisons (10.9%).

McKevitt added: “There are mixed fortunes for the big four, with Tesco and Morrisons registering falls in both share and sales. By contrast, both Asda and Sainsbury’s have increased share, beating the market average with growth rates of 3.6% and 3% respectively.”

It has also been a good period for Aldi and Lidl, which are holding their all-time record shares reached last period of 4.7% and 3.6% correspondingly.

McKevitt said: “Both retailers have recently announced impressive expansion plans. Aldi will aim to double its store numbers to 1,000 by 2021, while Lidl is seeking to boost its presence with an eventual total of 1,500 outlets.”

Danish discounter Netto is also poised to re-enter the UK market after announcing a tie-up with Sainsbury’s last month.

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