Supermarket sales see minor rise amid rising inflation

Lidl was the fastest growing supermarket again this period, with sales up by 13.9%

Supermarket sales rose by 0.1% in the 12 weeks to 10 July 2022 despite grocery inflation rising another 1.6%, according to the latest take-home grocery figures from Kantar.

This is the first time the market has registered growth since April 2021. Supply chain issues have driven costs up across the industry and like-for-like grocery price inflation now stands at 9.9% over the past four weeks.

Lidl was the fastest growing supermarket again this period, with sales up by 13.9%. Aldi was also in double-digit growth, boosting its sales by 11.3% compared with last year.

Tesco returned to growth this period for the first time since October, the retailer boosted its sales by 0.1% and retained a market share of 27.1%. Ocado was the only other retailer in growth, holding its market share steady at 1.8% while its sales were up 0.7%.

Meanwhile, it found that Sainsbury’s holds 14.9% of the market, followed by Asda at 13.7%, and Morrisons 9.4%. Co-op achieved a 6.3% market share this period and Waitrose stands at 4.6%. Frozen food specialist Iceland held its market share flat at 2.3%.

Fraser McKevitt, head of retail and consumer insight at Kantar, said: “Grocery prices continue to soar to near record-breaking heights and have jumped by another 1.6% since last month.

“This is the second highest level of grocery inflation that we’ve seen since we started tracking prices in this way in 2008 and we’re likely to surpass the previous high come August. With grocery price inflation at almost 10%, people are now facing a £454 increase to their annual grocery bills.”

He added: “All this means that people will be feeling the pinch during our first restriction-free summer since 2019. Taking a barbecue as an example, buying burgers, halloumi and coleslaw for some al fresco dining would cost you 13%, 17% and 14% more than it would have this time last year.

“Buying enough for a typical family barbecue, shoppers will have to put aside £9.94 rather than the £9.01 they spent last year.”

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