Grocery inflation in the UK fell in August but nearly 60% of households remain worried about the rising cost of their shopping.
Grocery sales rose by 3.0% while grocery inflation fell 1.7% over the four weeks to September compared to the same time last year, according to the latest data from Kantar.
Kantar head of retail and consumer insight Fraser McKevitt said: “Despite grocery price inflation easing back to 1.7% over the last four weeks, shoppers’ financial confidence hasn’t risen with it. Memories of the last two years remain strong, with nearly 60% of shoppers still very or extremely concerned about rising grocery prices.
“This is their second biggest financial worry, only behind home energy bills. Retailers have been doing their bit to help shoppers keep the cost of the weekly shop down, and the proportion of sales on promotion increased year-on-year for the sixteenth month in a row in August. More than half of all grocery trips include some kind of deal, and this proportion rises as the trolley gets bigger.”
Ocado fastest growing for the seventh month
Ocado was the fastest-growing grocer for the seventh consecutive month, delivering its quickest growth rate since May 2021 as sales grew 12.9%, ahead of the total online market which grew 4.4%.
During the period, Lidl’s sales were up 9.1% compared to last year. The discounter now accounts for 8.0% of the grocery market as it improved share every month since April 2021.
Rival discounter Aldi’s sales grew 1.3% in August.
Tesco’s market share was at 27.8% while Sainsbury’s upped its share to 15.2%, and Asda and Morrisons took 12.6% and 8.5% respectively.
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