Grocery prices soar as inflation pressures British consumers

In Great Britain, grocery prices increased by 4.7% year-on-year, marking the highest supermarket inflation since March of the previous year. This figure shows a significant rise from 4.1% last month and a steeper jump from 3.8% in April, according to data compiled by analysts at Kantar. British consumers made approximately 490 million trips to supermarkets over the past month, averaging nearly 17 visits per household, the highest measure since March 2020. The uptick in shopping frequency contributed to a 4.1% rise in take-home grocery sales for the four weeks leading to June 15 compared to the same period last year. However, this increased consumption was offset by a minor decline in the average spend per visit, which fell by 3p to £23.89, indicating tightened budgets amidst rising costs. As the summer season began, fruit sales surged, with over 2,400 packs of strawberries sold per minute. Meanwhile, sales for mangoes and blueberries increased by 27% and 10%, respectively. Despite these trends, overall grocery volumes saw a slight decline of 0.4% year-on-year for the first time this year. Analysts suggest this decline could be influenced by shifting health priorities, including the growing popularity of GLP-1 weight loss medications. Recent findings indicated that among users of these medications, approximately 4% of households in Great Britain now include at least one GLP-1 user, nearly doubling from last year’s figures. These consumers expressed intentions to reduce their consumption of chocolates, crisps, and biscuits, potentially altering shopping patterns in the retail sector. Concurrently, concerns over prices led to a notable increase in sales of own-label products, which grew by 4.2% this month compared to branded items, as consumers sought ways to manage their expenses. In this competitive environment, Ocado emerged as the fastest-growing online grocer, experiencing a sales increase of 12.2% over the 12 weeks leading up to June 15, which granted them a 1.9% market share. Retail chains like Lidl and Aldi also reported impressive growth, with 11.2% and 6.5% sales increases, respectively, boosting their market shares to 8.1% and 10.9%. Tesco, meanwhile, gained 0.5 percentage points to attain a 28.1% market share, while Asda experienced a sales decrease of 1.7%, leaving it with a market share of 11.9%. These trends highlight significant shifts in consumer behavior and market dynamics as inflationary pressures continue to shape shopping habits.