Grocery price inflation in the UK climbed to 17.5% in the four weeks to 19 March 2023 compared with a year earlier, according to the latest analysis by Kantar.
This is a new record and it means that households are facing an increase of £837 in their annual shopping bills if they don’t change their shopping behaviour.
However, the monthly report also showed that the sector is “fiercely competitive” and consumers are shopping around to find the best prices.
“Shoppers are taking action and clearly hunting around for the best value,” said Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel.
The average household now goes to the shops more than four times a week, and visits at least three of the top 10 retailers in any given month. If people don’t like the prices in one store “they will go elsewhere”, McKevitt explained.
Store loyalty cards have emerged as an important way for shoppers to save money amid the high cost of living, with supermarkets offering cheaper prices, coupons and points for people who scan them at the till. More than nine in 10 consumers now have at least one loyalty card.
People are also buying more own-label goods, with sales of these lines up 15.8% the latest four weeks compared to last year.
And the discounters Aldi and Lidl are continuing to perform well. Lidl was the fastest growing supermarket with sales up 25.8% and a market share of 7.4%. Meanwhile, Aldi secured a new record market share at 9.9%, driven by a 25.4% increase in its sales.
