(qlmbusinessnews.com Wed 27th, 2024) London, UK —
UK Grocery Price Inflation Slows to 4.5% Amid Ongoing Financial Struggles for Many Shoppers.
Recent data reveals a welcome deceleration in grocery price inflation across Great Britain, dropping to 4.5%, marking its lowest level since February 2022. However, despite this positive trend, a significant portion of households, one in four to be precise, continue to face financial difficulties, according to findings from retail researchers.
In a notable shift, premium retailers Waitrose and Ocado have emerged as the sole winners in attracting new shoppers over the past three months, as per the latest insights from Kantar analysts. The growth in demand for pricier branded groceries has surpassed that of supermarket own-label products.
Ocado, particularly, has seen impressive growth, aided by strategic price reductions that helped the online grocery giant rebound from pandemic-induced challenges. Reporting a robust 11% increase in sales to £645 million, Ocado Retail attributes its success to expanded offerings of Marks & Spencer branded items and competitive pricing strategies.
Hannah Gibson, CEO of Ocado Retail, highlighted a stabilizing market sentiment, noting that while consumers remain value-conscious, they are also willing to indulge in treats, offsetting costs by making savings on essentials.
Meanwhile, Waitrose has outpaced discounters like Aldi for the first time since 2021, with an annual sales growth rate of 3.9%. Fraser McKevitt, Head of Retail and Consumer Insight at Kantar, underscores that despite the noticeable slowdown in grocery inflation, a considerable segment of British households continues to feel financial strain, mirroring sentiments reported in November last year.
Lidl maintains its position as the fastest-growing high street grocer, benefiting from increased sales across categories like baked goods and fresh produce.
Overall, promotional deals have witnessed a surge, with £605 million more spent on such offers compared to the same period last year. Additionally, premium own-label lines from supermarkets have seen a significant uptick in sales, indicating that while budget constraints may be easing, consumers are still drawn to cost-effective alternatives to major brands.
While certain essentials like butter and milk have witnessed price declines, there has been a notable rise in the cost of sugary sweets and chocolate confectionery ahead of Easter festivities, reflecting typical seasonal purchasing patterns.
As the grocery landscape continues to evolve, retailers are navigating a delicate balance between meeting consumer demands for quality and affordability amidst ongoing economic challenges.
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