(qlmbusinessnews.com Wed. 14th Aug, 2024) London, UK —
Grocery Prices Rise as Wine Sales Surge Despite Inflation.
Despite a recent uptick in grocery price inflation, British shoppers have not been deterred from indulging in alcoholic beverages during a summer packed with sporting events, according to new data.
Market research firm Kantar revealed that wine sales saw a significant boost, with a 35% increase on the day of the Olympic opening ceremony, amounting to 4.6 million bottles sold. Additionally, beer sales soared, with £10 million worth of beer purchased on the day of the Euro football final.
This increase in alcohol sales comes amidst a 1.8% rise in grocery price inflation in the four weeks leading up to August, marking the first increase in over a year. The inflation rate was 0.2% higher than the previous four weeks, following 17 consecutive months of declining supermarket price increases.
Fraser McKevitt, Kantar's head of retail and consumer insight, noted that while shopping has become slightly more manageable compared to last year, consumers should still be vigilant about finding the best deals. “We’ve moved well away from those days of double-digit grocery price inflation,” McKevitt said, encouraging shoppers to compare prices.
Kantar's data also highlighted the products with the most significant price increases, including vitamin and mineral supplements, fruit juices, and chocolate. In contrast, toilet tissue, bottled cola, and dog food experienced the slowest price rises.
Better weather in August also contributed to an increase in barbecue-related food sales. Meanwhile, sales of cough lozenges jumped by 28% as consumers contended with Covid-19 and summer colds.
Supermarkets are currently engaged in fierce competition for customers, with numerous promotions and discounts available, according to McKevitt.
In a year-on-year comparison, the amount of groceries purchased by consumers increased by 3.8%.
However, the British Retail Consortium (BRC) has warned that further inflation could be on the horizon, driven by climate change and geopolitical tensions. Helen Dickinson of the BRC highlighted that adverse weather conditions in England and extreme heat in other parts of the world have damaged harvests, reducing supply and driving prices up.
Overall inflation in the UK remained at the Bank of England's target rate of 2% in June, though a rise is anticipated in July's data. The Bank of England recently reduced its key interest rate to 5% from 5.25%, marking the first cut since the pandemic began in March 2020. The rate had been steadily increased in an effort to control inflation, which had reached record levels in recent years.
Kantar's latest report also showed that Asda is struggling to maintain its market share, which fell by 1.1% compared to last year. In contrast, Sainsbury's achieved its largest year-on-year gain since July 1997. Asda's share of the UK grocery market now stands at 12.6%, significantly trailing Tesco's 27.6%.
Asda's recent financial results revealed a more than 5% drop in sales, leading the supermarket's chairman, Lord Stuart Rose, to suggest that co-owner Mohsin Issa should consider stepping back from his role in the company. In an interview with The Telegraph, Rose expressed his disappointment in Asda's performance, describing it as “embarrassing.”
While increasing competition from discount retailers has been cited as a factor in Asda's struggles, chief financial officer Michael Gleeson noted that losses to Aldi and Lidl are slowing down.
This News Story is brought to you by QLM Business News, your Digital Media Channel
Visit QLM businessnews.com
For more business news stories also follow us on Facebook, X and Youtube.
To Help qlm business news bring you more new stories like this, please like, share and subscribe.
Unlock unparalleled business growth and effortlessly attract a stream of new customers through QLM Business News Sponsored Advertising. Elevate your brand's presence and captivate your target audience with precision. Visit QLMbusinessnews.com and click on “Advertise” to harness the power of strategic advertising. Don't miss this unparalleled opportunity to propel your business to new heights of success!
Disclaimer: All images presented herein are intended solely for illustrative purposes and may not accurately depict the true likeness of the subjects, objects, or individuals referencted in the accompanying news stories.
