Grocery price inflation drives consumers to discounters | WARC | The Feed
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Grocery price inflation drives consumers to discounters
Grocery prices were up 14.7% year on year in the past four weeks according to figures from Kantar – and that is driving consumers to discounters like Aldi and Lidl and to own-label products.
Why it matters
At that rate, annual UK grocery bills are now £682 higher than before and it may not be the peak. As household budgets get ever more stretched, consumers are shopping primarily on price – and that’s a potentially big problem for brands.
Kantar’s data show that own-label sales increased 10.3% over the past four weeks, but branded goods grew just 0.4%.
Headline stats
- Sales at Aldi grew 22.7% in the 12 weeks to 30 October, while those at Lidl rose 21.5%; Aldi (9.2%) and Lidl (7.2%) now account for 16.4% of the UK grocery market.
- Sales of the very cheapest value own-label ranges were up 42% (but these represent just under 3% of the market).
- Separately, Barclaycard reports that 50% of consumers are planning for a simpler Christmas this year, cutting back on presents, food and drink, and socialising.
Key quote
“Just over a quarter of all households [27%] now say they’re struggling financially, which is double the proportion we recorded last November. Nine in 10 of this group say higher food and drink prices are a major concern” – Fraser McKevitt, Head of Retail and Consumer Insight, Kantar Worldpanel Division, UK.
Sourced from Kantar, The Guardian
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