Take-home sales at the grocers rose by 3.8 per cent in the four weeks to 4 August 2024 compared with a year ago, according to the latest data from Kantar, which also shows that sale of wine, nuts and crisps soared during major sporting events, suggesting that Brits defied the inflationary concerns to make the best of summer of sports.
Fraser McKevitt, head of retail and consumer insight at Kantar, comments, “Having reached its lowest rate in almost three years in July, August saw inflation nudge up again slightly. While this is noticeable following 17 straight months of falling rates, it actually marks a return to the average levels seen in the five years before the start of the cost of living crisis.”
Despite the ongoing pressures on consumers, this month saw people getting into the party spirit to celebrate the summer of sport.
McKevitt comments, “While people continue to make smart choices to manage their budgets, we should never underestimate Britons’ love of big occasions.”
Many marked the start of the Olympics over drinks and snacks – sales of wine were up 35 per cent, while nuts increased 60 per cent and crisps rose by 10 per cent on the Friday of the opening ceremony in Paris, compared with the previous week. England fans also roared on The Three Lions as the men’s UEFA European Football Championship reached its closing stages with £10 million spent on beer on the day of the final, the most spent on a Sunday in more than three years.
It is a mixed picture on supermarket shelves with prices now rising across 182 product categories, as the costs in 89 others fall. Kitchen towels and baked beans are now 7 per cent and 5 per cent cheaper respectively than they were last year.
McKevitt continues, “With this kind of pricing spread, shoppers will find that the type of product they’re putting in their baskets will really dictate how much they pay. They’re continuing to take advantage of the wide range of promotions being offered by the grocers to help keep the price of shopping down. Spending on deals rose by 15 per cent, while sales of products at their usual price saw no increase.”
As the country cheered on its sporting stars, for many it felt like summer finally arrived in July and August. Sales of burgers leapt by 32 per cent compared with the same time last year, as Britons finally lit the barbecue. Chilled prepared salad sales rose by 22 per cent while the amount spent on ice cream was 23 per cent higher. It wasn’t all fun in the sun though – 28 per cent more was spent on cough lozenges as people battled with COVID-19 and other summer colds.
Sainsbury’s market share has risen by 0.5 percentage points over the 12 weeks to 4 August, compared to the same period last year – its largest year-on-year share gain since July 1997. It was again the fastest growing of the traditional supermarkets, with sales increasing by 5.2 per cent.
Britain’s largest grocer Tesco has now maintained its streak of winning share every month since August 2023. Its hold of the market climbed by 0.6 percentage points to 27.6 per cent, while its sales jumped by 4.9 per cent. Asda now takes 12.6 per cent share, while Morrisons’ stake stands at 8.6 per cent.
Discounters Lidl and Aldi both saw sales growth. Sales rose by 11.3 per cent at online-only retailer Ocado, continuing its 6-month run as the fastest growing grocer.
