UK shoppers seek deals as grocery price inflation rises again

UK shoppers are turning to special offers to offset rising grocery prices, as inflation in the sector has increased once again. In the most recent four-week period ending on 4 October, supermarket prices surged by 2.5% compared to the previous year, up from 2.3% in the prior month, according to data from Worldpanel by Numerator. Shopping promotions experienced a significant uptick, rising by over £250 million compared to the same period last year, as consumers seek to manage their grocery expenses amid rising costs.

Fraser McKevitt, head of retail and consumer insight at Worldpanel, noted that the impending autumn budget is placing additional financial strain on families. He pointed out that more than half of shoppers are "very or extremely worried" about petrol prices, with nearly a third reporting that the rising fuel costs are already impacting their finances. McKevitt expects this cautious approach to persist until the Chancellor releases his plans, with shoppers relying even more on promotions to control their grocery spending.

On a positive note, chocolate confectionery prices have dropped by 3% compared to last year, offering some relief to households preparing for Halloween celebrations. Approximately 1.2 million households purchased pumpkins during the latest four-week period, marking a 10% increase compared to the same time last year. Over 250,000 households also bought pumpkin spice coffee.

Lidl experienced the most notable market share gains over the past 12 weeks, rising to 8.6% due to a 7.1% sales increase driven by fruit, vegetables, and wine. Ocado sales grew by 12.4%, outpacing overall online sales at 5.5%. Tesco and Sainsbury's saw sales at their tills increase by 1% and 1.3%, respectively, accounting for 27.8% and 15.2% of the market share. Asda's market share stands at 11.5%, while Aldi holds 10.5%, with sales at the discount retailer up 0.4% year on year.

Beyond supermarkets, grocery sales at Marks & Spencer rose by 14.9%.