Supermarket prices have seen a 2% rise over the past year, with chilled soft drinks, chocolate confectionery, and skin care products showing the biggest increases. Data from analysts Kantar revealed that grocery price inflation has edged up in September, as households turned to promotions to manage their finances. Sales of discounted items surged by 7.4% while full-price sales only rose by 0.3%. Overall take-home sales across supermarkets increased by 2% during the same period.
The report highlighted that prices of chilled soft drinks, chocolate confectionery, and skin care products are rising rapidly, whereas the average prices of toilet and kitchen roll have decreased by 6% compared to last year. Additionally, dog and cat food prices are now 4% and 3% cheaper, respectively.
In response to the competitive retail environment, supermarkets are striving to keep costs down for consumers. Kantar’s head of retail and consumer insight, Fraser McKevitt, noted that some categories are experiencing price decreases due to retailers’ efforts. The wet weather in September led to a surge in sales of hot chocolate by 28%, soup by 10%, and home baking by 7%. Halloween pumpkin sales also nearly doubled compared to the previous year.
A survey by Kantar revealed that more consumers are finding it challenging to balance environmental concerns with financial worries, with 59% of Britons stating that they are struggling to act sustainably, up from 44% last year. Tesco increased its market share to 28%, while online grocer Ocado became the fastest-growing retailer with a sales increase of 10% over the latest 12 weeks. Lidl’s sales rose by 8.8%, and Aldi’s market share reached 9.8%.
Overall, supermarket prices have seen a steady increase, with particular categories experiencing notable rises and falls. As consumers continue to navigate financial constraints, the battle for value in the retail sector remains fierce.