Supermarket essentials including butter, chocolate and meat continue to surge in price
Food price inflation rose to 4.7% in the four weeks to 15 June - the highest level since March - with some of the steepest increases hitting staple items
A surge in the cost of staples like butter, chocolate, and meat is putting a strain on household grocery bills, despite supermarkets experiencing a surge in sales. According to Kantar, food price inflation rose to 4.7% in the four weeks ending June 15, with significant price increases for staples.
Prices for chocolate, butters and spreads, and fresh meat have all risen, contributing to a 4.1% increase in total take-home grocery sales compared to the same period last year. Fraser McKevitt, head of retail and consumer insight at Kantar, commented: "Higher prices didn't stop shoppers making 490 million trips to the supermarket over the latest month, averaging almost 17 per British household. That's the highest we've recorded since March 2020."
In response to the squeeze, shoppers are making more frequent visits but spending less per trip, with the average basket value decreasing slightly to £23.89. Mr McKevitt noted: "Consumer concerns over price are continuing, and this is reflected in the figures."
"Sales of own-label ranges grew at 4.2% this month, ahead of branded lines, as shoppers looked to balance their budgets. Deals also remain an important tool for retailers to offer value and the proportion of spending on promotion stepped up to 28.8% this period."
Despite stubbornly high food price inflation, not all retailers have seen a dip in sales. Tesco continues to lead the market, gaining 0.5 percentage points in market share to reach 28.1% – its highest for several years – with sales up by 7%.
Lidl also had another strong month, with sales skyrocketing by 11.2%, marking its third consecutive month of double-digit growth. Its share now stands at 8.1%. Aldi saw a rise of 6.5% and holds 10.9% of the market.
Online specialist Ocado was the fastest-growing supermarket overall, with a 12.2% surge in sales, driven by higher spending in wealthier postcodes across London and the South East. Meanwhile, M&S posted an impressive 12% rise in grocery sales – though it isn't included in Kantar's core grocery market share figures due to its broader focus on clothing and general merchandise.
Fresh produce proved particularly popular amid the warmer weather. Sales of strawberries soared, with shoppers snapping up 2,400 packs every minute, while exotic fruits such as mangoes and blueberries climbed 27% and 10% respectively.
However, overall grocery volumes fell slightly by 0.4% over the four-week period – the first such decline this year. Kantar believes this may be partly linked to the rise of GLP-1 weight-loss drugs like Wegovy and Ozempic. Mr McKevitt elaborated: "Supermarkets and grocery brands are entering new territory as weight loss drugs become more popular, with four in 100 households in Great Britain now including at least one GLP-1 user."
Four in five of the users we surveyed say they plan to eat fewer chocolates and crisps, and nearly three quarters intend to cut back on biscuits. ".
In other news, Sainsbury's saw a sales increase of 5.7%, boosting its market share to 15.2%, while Waitrose reported its strongest performance since 2021, up by 5.5%. Morrisons experienced a growth of 2.2%, but Asda's sales dropped by 1.7%, continuing a trend of declining market share.
This latest data emerges amidst growing frustration from consumers who have yet to feel the benefit of falling global food commodity costs. And with the prices of butter, chocolate and meat still on the rise, the weekly shop is likely to remain a key battleground for household budgets.
Kantar's grocery inflation measure, considered the most authoritative snapshot of supermarket price rises, is based on over 75,000 identical products bought by British shoppers.
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