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Falling inflation, football fever boost grocery sales

Falling inflation, football fever boost grocery sales
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Grocery sales benefited from the men’s Euros, as football fans drove up purchases of beers, crisps and snacks on matchdays, shows a recent report highlighting a few interesting trends like spike of no and low-alcohol beer on matchdays and branded products outpacing own-label items as pressure eased due to falling inflation.

According to the latest data from Kantar, take-home sales at the grocers increased by 2.2 per cent over the four weeks to 7 July 2024, showing the impact the tournament has made on the sector.


Commenting on the figures, Fraser McKevitt, head of retail and consumer insight at Kantar, says, “England’s hopes might have been dashed on Sunday, but there was still some cause for celebration in the grocery industry. Football fans drove beer sales up by an average of 13 per cent on the days that the England men’s team played, compared with the same day during the previous week.

"Sales of crisps and snacks also got a boost, up by 5 per cent compared with the month before. With many matches played on “school nights”, though, some Britons chose moderation. Spending on no and low-alcohol beer soared by 38 per cent on matchdays.”

While the calendar of summer events is now well underway, shoppers are continuing to reach for items more typically associated with cooler weather.

McKevitt continues, “We’re still waiting for the great British summer to break through the clouds, and we’re seeing the effects of that in our shopping baskets. Over the past three months, sales of cold and flu treatments jumped by 35 per cent, while sun cream dipped by 10 per cent compared with last year, when we were enjoying the warmest June on record. Some shoppers aren’t letting the disappointing weather dull their glow, however, pushing up sales of artificial tan by 16 per cent.”

Grocery price inflation fell again this month to 1.6 per cent – its lowest figure since September 2021. The drop coincided with the fastest rise in monthly footfall so far in 2024. Britons made 2 per cent more trips to the supermarket this period than they did one year ago. As pressure on pockets eased, sales of branded products increased by 3.6 per cent, outpacing own-label items at 2.7 per cent.

Amid signs that consumer confidence is improving, retailers will be turning their attention to the King’s Speech on Wednesday to see what the newly elected government’s legislative agenda holds for the grocery sector.

McKevitt adds, “The retail landscape looks very different from 2010 when the last Labour government was in power – and so do our shopping trolleys. As diets have evolved, sales of popcorn, peanut butter and chilled vegetarian products, such as sausages and grills, have more than trebled. We’re also more likely to have premium ground and bean coffee in our cups now.”

Ocado was the fastest growing grocer for the fifth month in a row, with sales up by 10.7 per cent over the 12 weeks to 7 July. The online-only retailer now holds 1.8 per cent of the market, up 0.1 percentage points compared with the same period last year.

Lidl saw a 7.8 per cent jump in sales while Waitrose gained share for the first time since January 2022, achieving a 0.1 percentage point rise to 4.5 per cent.

Britain’s largest grocer Tesco achieved its biggest share gain since November 2021, taking 27.7 per cent of the market – a 0.7 percentage point increase versus last year. Co-op has a 5.7 per cent share.