|
UK grocery price inflation eased in recent weeks, to the tamest level since December 2024, data on Wednesday revealed, offering ‘welcome news’ for consumers. According to data from Worldpanel by Numerator, annual grocery price inflation in the four weeks to May 17 was 3.1%, easing from 3.8% in the month ended April 19. ‘The easing in the rate of inflation is welcome news for shoppers who have been grappling with warnings of a hike in food prices due to the impact of the war in the Middle East,’ Worldpanel analyst Fraser McKevitt commented. ‘This follows the UK government’s announcement on a plan to further reduce import tariffs by £150 million on a range of food categories. While further details are expected this week, this would equate to just £5 per household, with the average annual shopping bill for food and drink, excluding alcohol, totalling £4,087.’ Worldpanel said it was the coolest rate of grocery price inflation in the UK since December 2024. Worldpanel said just over 30% of sales during the period stemmed from promotions, as shoppers strived ‘to keep costs down’. A year ago, the proportion of sales coming from promotions was just over 28%. Worldpanel added: ‘Spending on promoted items rose 9.5% year-on-year, while full price spending was virtually flat, growing by only 0.1%.’ For the full 12 weeks of the survey to May 17, UK grocery sales rose 2.3% to £36.58 billion from £35.77 billion a year prior. Worldpanel added: ‘Grey skies over the early May Day bank holiday weekend were a far cry from the current heatwave, and categories felt the impact over the month. While volumes of summer essentials like suncare and ice cream were down 28% and 3% respectively, warming staples found their way into baskets with soups up 9%, fresh pies up 4% and coffee up 5% year on year.’ However, the spring bank holiday saw UK temperatures spike, and on Tuesday, they hit a record high for May. ‘We expect to see a significant uplift in spending on summer essentials like BBQ, suncare and ice cream as the month comes to a close,’ McKevitt said. Tesco PLC sales in the 12 week period rose 3.2% on-year to £10.31 billion, with its market shares growth to 28.2% from 27.9%. It is the market leader. J Sainsbury PLC sales rose 3.1% to £5.58 billion, and its share of the market nudged up to 15.2% from 15.1%. Ocado Retail, an Ocado PLC and Marks & Spencer Group PLC joint-venture, was the fastest growing. Sales jumped 10% to £784 million, while its market share inched up to 2.1% from 2.0%. Lidl became the fifth largest UK grocer by market share, moving to 8.6% from 8.1%, and overtaking Morrisons which declined to 8.3% from 8.4%. Aldi’s share of the UK grocery market eased to 10.8% from 11.0%. while Asda’s sunk to 11.5% from 12.1%. M&S does not fit the definition of grocer per the survey’s methodology, though Worldpanel noted its grocery sales shot up 9.3% over the 12 weeks. The survey is based on over 75,000 identical products compared year-on-year. Copyright 2026 Alliance News Ltd. All Rights Reserved.
|
