Skip to content
Search
AI Powered
Latest Stories

Grocery price inflation edges up, but sales growth continues to decline at c-stores

Grocery price inflation edges up, but sales growth continues to decline at c-stores
iStock image

Grocery price inflation increased slightly to 2.0 per cent during the four weeks to 29 September, up from 1.7 per cent last month, according to the latest data from Kantar. Take-home sales at the grocers grew by 2.0 per cent over the same period.

However, sales growth continued to decline in the convenience channel, with symbols and independents seeing 1.2 per cent drop in sales 12-week period to 29 September. Co-op also saw sales decreasing by 0.9 per cent.


Asda, which has been expanding into the convenience sector, was the worst performer with a 5.1 per cent drop in sales.

All three retailers have also been in the red last month, with similar numbers.

Ocado was the fastest growing grocer for the eighth month running, pushing its sales up by 10.0 per cent over the latest 12 weeks. The overall online market expanded by 3.5 per cent over the 12 weeks, now worth £3.7 billion, with 22.1 per cent of households shopping online.

The findings, which come ahead of the chancellor’s autumn budget, showed that spending on promoted items continued to rise, climbing by 7.4 per cent in September as households sought to manage their finances. By comparison, full price sales nudged up by 0.3 per cent.

Despite the annual rate of grocery inflation growing, the contest between the grocers to attract shoppers through their doors has seen prices roll back on some essentials.

Fraser McKevitt, head of retail and consumer insight at Kantar, said the “battle for value” is on in the fiercely competitive sector, leading price cuts on some essentials, despite the growth in inflation rate.

“Supermarkets are doing what they can to keep costs down for consumers and thanks to their efforts the prices in some categories are falling. The average price paid for toilet and kitchen roll is 6 per cent lower year-on-year, for example, while dog and cat food are 4 per cent and 3 per cent cheaper respectively.”

Much of the UK saw record monthly rainfall in September, impacting how people shop. “The unusually wet weather this September had the nation rushing for those classic warming staples. Hot chocolate sales surged by 28 per cent, soup by 10 per cent and home baking by 7 per cent as people looked to stave off the autumn blues,” McKevitt said.

Halloween seems to be on some shoppers’ minds early, and retailers will be hoping for a spooky season sales boost, McKevitt added.

“Pumpkins are flying off the shelves, with sales nearly doubling last September’s figures, at just under £1 million over the last four weeks. Sugar confectionery has also seen a 9 per cent lift, and spending is expected to ramp up further this month as trick or treating approaches – confectionery sales were 16 per cent higher in the second half of October last year.”

More for you

Sugro UK partners with Britvic to launch industry-first sample box

Sugro UK partners with Britvic to launch industry-first sample box

Leading wholesale buying and marketing group Sugro UK has collaborated with Britvic Soft Drinks, a global organisation with 39 much-loved brands sold in over 100 countries, to launch a groundbreaking Fast Food Sample Box.

The sample box is specifically designed for ICS UK LTD customers, giving them a unique opportunity to sample and experience new Fast Food soft drinks offerings firsthand.

Keep ReadingShow less
Plant-based ready meal

Plant-based ready meal brand on brink of collapse

British plant-based ready meal maker Allplants has filed a notice of intention to appoint administrators, citing ongoing financial losses, stated recent reports.

Allplants, known as the UK’s largest vegan ready meal brand, has faced mounting losses over recent years. Filing the notice provides the company with a critical window to explore options to avoid liquidation, such as restructuring, refinancing, or negotiating a sale.

Keep ReadingShow less
sottish retail-wholesale

Scottish retail-wholesale figure celebrated at University of Stirling graduation

Entrepreneur and businessperson Stanley Morrice, an influential figure in the retail and wholesale sectors, received an Honorary Doctorate from the University of Stirling at Stirling’s winter graduation held today (22).

Stanley, from Fraserburgh, is being recognised for his services to Scottish food, drink and agriculture. He entered the sector as a school leaver. In 1993, he joined Aberdeen-based convenience stores Aberness Foods, which traded as Mace. He rose to become Sales Director, boosting income by 50 per cent and tripling profits, and went on to be Managing Director, successfully leading the business through a strategic sale to supermarket group Somerfield.

Keep ReadingShow less
consumer cheer
iStock image
iStock image

Consumers cheer up as Budget nerves lift: GfK

British consumers have turned less pessimistic following the government's first budget and the US presidential election and they are showing more appetite for spending in the run-up to Christmas, according to a new survey.

The GfK Consumer Confidence Index, the longest-running measure of British consumer sentiment, rose to -18 in November, its highest since August and up from -21 in October which was its lowest since March.

Keep ReadingShow less
Retail Sales
Photo: iStock

Retail sales take bigger-than-expected hit in October

British retail sales fell by much more than expected in October, according to official data that added to other signs of a loss of momentum in the economy in the run-up to the first budget of prime minister Keir Starmer's new government.

The Office for National Statistics (ONS) said sales volumes have fallen by 0.7 per cent in October. A Reuters poll of economists had forecast a monthly fall of 0.3 per cent in sales volumes from September.

Keep ReadingShow less