Grocery sales up 4.8 per cent even as inflation hits another peak

Take-home grocery sales rose by 4.8 per cent in the 12 weeks to 2 October 2022 while grocery price inflation has hit another new peak, according to the latest figures from Kantar.

Grocery inflation now stands at 13.9 per cent, a record high since Kantar began tracking prices in this way during the 2008 financial crash.

“The cost-of-living crisis is still hitting people hard at the checkouts and this latest data will make tough reading for many,” Fraser McKevitt, head of retail and consumer insight at Kantar, commented.

“Based on our numbers, the average household is facing a £643 jump in their annual grocery bill to £5,265 if they continue to buy the same items. Taking that at a basket level, that’s an extra £3.04 on top of the cost of the average shopping trip last year which was £21.89.”

McKevitt noted that consumers are now looking for ways to manage budgets and to avoid paying more for their shopping.

“We’re generally reluctant to change what we eat, so this is more about sticking to the food we know and love while hunting for cheaper alternatives like supermarkets’ own label goods. We aren’t seeing dramatic evidence of diets changing. For example, while frozen veg sales have gone up slightly, there hasn’t been a big switch away from fresh products, which are still worth ten times more. However, one standout from the data this month was the surge in marmalade sales by 18 per cent as the nation paid its respects to the Queen,” he said.

Sales of supermarket own label lines continue to grow as consumers move away from branded products. Own label sales increased by 8.1 per cent this month, while branded items declined by 0.7 per cent.

“People are pretty savvy at seeking out best value and retailers are expanding their ranges to help them do this. We’ve seen grocers making a virtue of visually imperfect fruit and vegetables in recent years, allowing them to carry on offering the fresh products consumers want but at a cheaper price. Many shoppers have been converted and sales of ranges like Tesco Perfectly Imperfect or Morrisons Naturally Wonky were up collectively by 38 per cent this month,” McKevitt added.

However, new data from Kantar suggests that the scale of price rises is trumping sustainability concerns for many people, with the proportion of British shoppers who try to buy products with more environmentally friendly packaging slipping to 59 per cent, from 62 per cent last year.

With an eye on rising energy bills, shoppers appear to be searching for cheaper ways to cook as they try to avoid using their ovens. Sales of cooking appliances including slow cookers, air fryers and sandwich makers, which generally use less energy, are up by 53 per cent. Meanwhile sales of duvets and electric blankets have grown by 8 per cent while candles increased by 9 per cent, suggesting people may be preparing for possible winter blackouts.