Grocery price inflation fell to 5.3% in February, the lowest rate seen since March 2022, although value remains a priority for shoppers.
Food prices were down 1.5% from January, while take-home grocery sales during the period grew in value by 5.1% in the four weeks to February 18, 2024, according to the latest market share data from Kantar.
Kantar strategic insight director Tom Steel said: “Things are looking up for shoppers this February. Consumers have been navigating a grocery inflation rate of more than 4% for two years now, so this latest easing of price rises is especially welcome.”
However, he noted that, despite falling prices, customers were still targeting value. During the period, shoppers spent £586m more on promotions than in the same month last year.
“Sainsbury’s and Iceland’s efforts paid off in particular, and they were the only retailers to attract more shoppers through their doors,” said Steel. “The battle between supermarkets’ own-label lines and brands also remains fierce. Own-label nipped ahead this month, growing sales by 5.5% versus branded products at 5.3%.”
UK shoppers still found room in their budgets to celebrate on Valentine’s Day, with sales of steak and boxed chocolates shooting up by 12% and 16%, respectively, in the week before compared with the previous year.
Even on Valentine’s Day, Steel said that “£36m was spent on meal deals costing £10 or more in the week leading up to February 14. This figure is slightly down on 2023 when spending hit £43m, but that’s because consumers chose to make more savings this year through price cuts.”
February also saw alcohol sales come storming back in the aftermath of Dry January – up 18% in volume terms.
Lidl achieves double-digit growth
Discounter Lidl was the only grocer to achieve double-digit growth during the period, with sales up by 10.9% over the 12 weeks to February 18, making it the fastest-growing grocer for the sixth month running. Lidl now holds a 7.5% share of the market, an increase of 0.4 percentage points.
Fellow discounter Aldi also grew ahead of the market, boosting sales by 5.7% and maintaining its 9.4% market share.
Tesco and Sainsbury’s increased their market share 0.3 and 0.4 percentage points, respectively. Sainsbury’s now holds a 15.6% share, with sales up 7.6%. Tesco sales jumped 6.2%, pushing the UK’s largest retailer’s market share to 27.6%.
Waitrose sales increased by 3.8%, accounting for a 4.6% share. Morrisons share stands at 8.8%, with sales up 3.1% year on year, and Asda sales increased by 1.9%, with its market share holding at 13.8%.
Iceland’s market share is 2.3%, with sales up by 2.1%, while the Co-op’s sales were up 1.4% with a 5.3% share of the market.
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