Back-to-school shopping boosts grocery sales in Great Britain

In Great Britain, grocery spending saw a notable increase last month, driven by households preparing for the back-to-school season. Sales of lunchbox staples such as fromage frais, cereal, and fruit bars surged by 14% in the last week of August compared to the previous year. Chocolate biscuit bars also experienced a significant rise in sales, up by 12%. This uptick in demand reflects parents' efforts to stock up as summer ends and the school year begins. Despite the increase in grocery sales, overall financial confidence among shoppers remains low. Nearly 60% of households expressed concerns about rising grocery prices, which have become their second-largest financial worry after home energy bills. The grocery price inflation rate slightly decreased to 1.7% in the four weeks leading up to September 1, down from 1.8% the previous month, indicating some relief for consumers. Retailers are responding to these economic pressures by offering more promotions, with the proportion of sales on promotion rising for the 16th consecutive month. More than half of grocery shopping trips now involve some form of deal, particularly as consumers spend more. This trend highlights the ongoing challenges faced by shoppers in managing their grocery budgets amid inflationary pressures. In terms of supermarket performance, Ocado led the growth with a 12.9% increase in sales year-on-year, while Asda reported a decline of 5.6%. Tesco and Sainsbury's also saw positive sales growth, indicating a competitive landscape as retailers strive to attract customers amidst changing economic conditions.