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

Volumatic employees ‘Wear It Pink’ to support Breast Cancer Now

Volumatic employees ‘Wear It Pink’ to support Breast Cancer Now, with Mandy House positioned second from right

Volumatic employees ‘Wear It Pink’ to support Breast Cancer Now

Employees from cash handling experts Volumatic have taken part in a special "Wear It Pink" day to raise money for cancer charity, Breast Cancer Now.

Around 40 staff members based at Volumatic’s Head Office in Coventry donned something pink – from socks, scarves and wigs to full head-to-toe outfits in pink, to raise funds for a charity very close to their hearts.

Keep ReadingShow less
Bira CEO Andrew Goodacre
Bira CEO Andrew Goodacre

'Devastating and out of touch' – indies react to Budget bombshell

Following the initial response condemning the Budget as 'the most damaging for independent retailers in recent memory' from the British Independent Retailers Association (Bira), members have shared their stark reactions to the triple burden of doubled business rates, increased National Insurance, and higher minimum wage costs.

Multiple retailers have calculated specific impacts on their businesses, with costs ranging from £90,000 to £150,000 per year.

"This budget was horrendous for us as a company. Estimated costs to be around £110,000 - £120,000 per year," said Andrew Massey of Masseys DIY in Swadlincote, Derbyshire.

Keep ReadingShow less
Brocks at Rockwell Green store

Brocks at Rockwell Green store

Christie & Co

'Popular' Somerset store on the market as long-term owners retire


Brocks at Rockwell Green, a Premier-branded convenience store near Wellington, Somerset is on the market as owners Simon and Rachel Brock are now looking to retire - after running the store for nearly 25 years.

Keep ReadingShow less
Ryan Reynolds and Rob McElhenney

Ryan Reynolds and Rob McElhenney

Rob McElhenney and Ryan Reynolds announced as new co-owners of Wrexham Lager

Wrexham Lager Beer Co Ltd, the oldest lager brewery still existing in Britain that has been brewing in Wales since 1882, has announced Rob McElhenney and Ryan Reynolds as new co-owners of the company alongside the Roberts family.

The acquisition was made by Red Dragon Ventures, a joint venture formed by The R.R. McReynolds Company, majority owner of Wrexham AFC, and the Allyn family of Skaneateles, New York. Red Dragon Ventures was created to drive growth in the Wrexham community and Wrexham AFC.

Keep ReadingShow less
Solar and wind power
iStock

Leading beverage brands join forces to accelerate renewable energy adoption

Ten global beverage companies have joined forces under a new industry-wide consortium, called REfresh Alliance, which is designed to help accelerate renewable energy adoption across the industry’s supply chain.

The new initiative invites additional companies from across the beverage industry to pool and scale their resources to remove barriers to renewable energy adoption in the supply chain, provide education on best market practices and support the industry’s transition to Net Zero.

Keep ReadingShow less