Grocery Price inflation hits record 16.7%
Overall take-home grocery sales rose by 5.7% during the 4 week period and by 7.6% over the 12 weeks to 22 January
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Grocery price inflation hit a record 16.7% in the four weeks to 22 January 2023, according to Kantar, the highest level since it started tracking the figure in 2008.
Overall take-home grocery sales rose by 5.7% during the 4 week period and by 7.6% over the 12 weeks.
Aldi was the fastest growing grocer for the fourth month in a row this period, with sales 26.9% higher year on year. It now holds 9.2% of the market. Lidl’s sales jumped by 24.1%, putting its market share at 7.1%.
Sainsbury’s sales increased by 6.1%, just 0.1% higher than Asda and Tesco, giving it 15.4% of the market. Tesco remains the largest British retailer with a 27.5% market share while Asda holds 14.2%. Although its sales fell by 1.9%, Morrisons’ performance has continued to improve for the eleventh month in a row and its market share now stands at 9.1%.
Iceland’s share increased by 0.1% to 2.5%, driven by an annual sales rise of 10.6%. Ocado matched the market’s growth rate at 7.6%, well above overall online sales which were down 0.7%. Convenience specialist Co-op has a 5.5% share of the market and Waitrose accounts for 4.7% of total sales.
Fraser McKevitt, head of retail and consumer insight at Kantar, said: “Late last year, we saw the rate of grocery price inflation dip slightly, but that small sign of relief for consumers has been short-lived.
“Grocery price inflation jumped a staggering 2.3 percentage points this month to 16.7%, flying past the previous high we recorded in October 2022. Households will now face an extra £788 on their annual shopping bills if they don’t change their behaviour to cut costs.”
He added: “Competition in the British grocery sector is as intense as it’s ever been as retailers strive to retain shoppers. The grocers have been doing this by boosting their own-label ranges especially, with sales of these lines growing consistently over the past nine months. January was no exception as own-label lines grew by 9.3%, well ahead of branded alternatives which were up by just 1.0%.”
