Food price inflation in the UK rose to a new record high in February, while German discount supermarkets continued to increase their market share, Kantar figures showed on Tuesday.
According to Kantar, in the four weeks to February 19, grocery price inflation was 17.1%. This is the highest inflation ever recorded by Kantar for food.
“Our latest research shows that grocery price inflation after energy costs is the most important financial issue for the public, with two-thirds of people worrying about food and drink prices, over public sector strikes and climate change. A quarter say they are struggling financially, compared to one in five around this time last year. The numbers speak for themselves. If people don’t change how they buy their groceries, households will face an increase in their average annual accounts by GBP 811,” said Kantar analyst Fraser McKevitt.
Over the four-week period, grocery sales increased by 8.8%. For the longer 12 weeks of the study,revenue was 8.1% higher at GBP33.64 billion, compared to GBP31. 12 billion a year earlier.
Tesco PLC’s revenue rose 6.6% in those 12 weeks to GBP9.19 billion,up from GBP8. 62 billion a year earlier. However, the market share fell from 27.7% to 27.3%.
J Sainsbury PLC’s revenue increased by 6.2% from GBP 4.82 billion to GBP 5.12 billion, but as with Tesco, its market share declined. Sainsbury’s had a 15.2% share of the UK grocery market over the 12 weeks, up from 15.5%.
Turnover of Ocado PLC, another London-listed company, increased by 11% from GBP 564 million to GBP 628 million. The market share increased from 1.8% to 1.9%.
In terms of sales, Aldi was the fastest growing grocer. Revenue increased by 27% to GBP3.16 billion,increasing market share from 8.0% to 9.4%. Lidl’s revenue increased by 25% to GBP 2.39 billion, increasing its market share from 6.1% to 7.1%.