UK grocery price inflation rises as supermarket sales hit 2024 high

Spending in supermarkets rose last month to the highest level since 2020’s pandemic panic-buying spree as grocery price inflation rose and households prepared for Halloween and Christmas.
Kantar, the market researcher, said supermarket sales climbed 2.3 per cent to £11.6 billion, the most since consumers stockpiled groceries before the first Covid-19 lockdown. The number of shopping trips jumped to a four-year high of 480 million, averaging four shops a week per household.
Fraser McKevitt, of Kantar, said: “This was the busiest month for the supermarkets since March 2020, when people were preparing for the first national lockdown. Trip numbers have been going up gradually for some time, but this steady march hasn’t reached pre-Covid levels of shopping frequency just yet.”
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Strong demand came amid a renewed rise in grocery inflation, Kantar said, with prices rising 2.3 per cent on an annual basis over the four weeks to November 3. Confectionery spending got a boost to £525 million in October as sales of chocolates and sweets went up, climbing by 13 per cent and 7 per cent respectively, to satisfy trick-or-treaters.
Families are also stocking up for Christmas, with 648,000 shoppers having already picked up a Christmas cake. McKevitt added: “Some people think Christmas ads hit our screens too soon but it’s clearly important for retailers to set out their stalls early.”
Asda was again the weakest of the big supermarket groups. The struggling chain’s sales are down 5.5 per cent in the year, reducing its market share to 12.5 per cent. Morrisons’ sales grew by 2.4 per cent, outpacing the market average for the first time since June 2021.
Lidl was the fastest-growing retailer with a bricks and mortar presence for the 15th period in a row, with sales up 7.4 per cent.
Tesco sales rose by 4.6 per cent, taking it to 27.9 per cent of the market, up 0.6 percentage points on last year. Spending through the tills at Sainsbury’s climbed 4.4 per cent, making its overall share 15.5 per cent.
Kantar’s grocery inflation figures are closely watched for clues on which direction the official inflation reading will travel. According to the Office for National Statistics, CPI inflation slipped to 1.7 per cent in September from 2.2 per cent in August.