UK Grocery Market Inflation Falls to Record Low
The latest grocery share figures from Kantar Worldpanel, for the 12 weeks ending 22 June 2014, show market growth bouncing back to 2.8% from last period’s historic low of 1.7%. Compared with Kantar Worldpanel’s measure of inflation which stands at just 0.8%, this indicates real volume growth.
Fraser McKevitt, consumer insight consultant at Kantar Worldpanel, explains: “The low grocery price inflation this period will be welcome news for household budgets. The outlook is positive as we predict continuing sub 1% levels into the near future, providing some relief for cash-strapped consumers.”
He adds: “Aldi and Lidl continue their stellar growth streaks, holding their all-time record shares reached last period of 4.7% and 3.6% respectively. Both retailers have recently announced impressive expansion plans. Aldi will aim to double its store numbers to 1,000 by 2021, while Lidl is seeking to boost its presence with an eventual total of 1,500 outlets.”
Looking outside of the big four, Waitrose and Farmfoods are both continuing to perform strongly with the latter growing ahead of the market at 23.3%. Iceland held its 2.0% market share in line with last year.
Fraser McKevitt continues: “There are mixed fortunes for the big four with Tesco and Morrisons registering falls in both share and sales. By contrast, both Asda and Sainsbury’s have increased share, beating the market average with growth rates of 3.6% and 3.0% respectively.”
Grocery inflation has shown its ninth successive fall and now stands at 0.8% for the 12 week period ending 22 June 2014. This is the lowest level in the Kantar Worldpanel dataset which began in October 2006 and reflects the impact of Aldi and Lidl and the market’s competitive response as well as deflation in some categories including vegetables and milk.
