Grocery price inflation drops to lowest level in over a year

investmentweek.co.uk:

The measure fell to 12.2% for the four weeks to 3 September 2023.

According to the latest research from Kantar, the measure fell to 12.2% for the four weeks to 3 September. 

Take-home sales from the grocers rose by 7.4% compared with the same period in 2022, a slight increase on the 6.5% growth reported last month.   

The discount retailers have benefited from the inflationary context with knock-on effects for British shopping habits more generally. This month, Aldi grew sales by 17.1% and Lidl by 16%. Between them, the discounters now capture 17.7% of the sector. 

UK business leaders forecast inflation to fall over next 12 months

Fraser McKevitt, head of retail and consumer insight at Kantar, said: «We expect this performance to continue as inflation remains stubbornly high, however, growth rates for both the discounters have been slowing in recent months as they annualise against rapid rises last year.»

One of the big stories of recent times has been the boost in own-label sales which dominate Aldi and Lidl's shelves. 

Sales grew again by 9.9% in the latest month and supermarket lines now make up over half of everything shoppers buy, up from 48% in August 2013. This is equivalent to a £3bn shift in sales away from brands. 

The discounter model of offering everyday low value and fewer promotions has also caught on in the wider market, with only 26% of spending now on deals, compared with 38% ten years ago.

UK retail sales up by 4.1% in August

Sainsbury's and Tesco were the fastest growing traditional retailers this month, growing sales by 9.1% and 9.3%, respectively. Tesco's share now stands at 27.2%, up by 0.3 percentage points from last year, and Sainsbury's at 14.8%, up by 0.2 percentage points. 

Asda's market