People shop at a grocery market, in London, Britain May 6, 2023. Photographer Emilie Madi/File Photo
By Reuters
British grocery inflation held steady at 4.7% in the four weeks to November 30, industry data showed on Tuesday, keeping the pressure on households who are facing higher bills as they head into the Christmas holiday period.
The figure from Worldpanel by Numerator (formerly Kantar) provided an early indication of pricing pressures ahead of official UK inflation data on December 17.
The Bank of England is watching food prices closely as it believes they play a big role in shaping the public’s overall inflation expectations. Britain’s headline inflation rate eased to 3.6% in October.
UK PRICES RISE THE FASTEST IN CHOCOLATE, MEAT
Worldpanel said prices were rising the fastest in chocolate confectionery, fresh meat and poultry and falling fastest in sugar confectionery, household paper, and fragrances.
It said UK grocery sales over the four weeks rose by 3.4% – indicating volumes were down after inflation is taken into account.
“Retailers are ramping up investment in promotions to encourage shoppers through their doors as the march to Christmas gets underway with sales expected to exceed 13.6 billion pounds ($18.1 billion) in December,” Worldpanel said.
It said 31.2% of spending in November was on promoted items, up from 30% last year, and noted the cost of a Christmas turkey dinner for four is 32.46 pounds ($43.28), a few pence cheaper than last year.
TESCO ENJOYS BIGGEST MARKET SHARE, SAINSBURY’S AT NO. 2
Worldpanel said industry leader Tesco’s (TSCO.L), opens new tab sales rose 4.7% over the 12 weeks to November 30 year-on-year, taking its market share to 28.3%. Sales at No. 2 player Sainsbury’s (SBRY.L), opens new tab increased 5.1% and its share rose to 16.0%.
However, number three Asda continued to struggle – its sales fell 4.3% and its share fell to 11.5%, down 90 basis points on the year.
Separate survey data published on Tuesday showed British consumers kept a tight rein on their overall spending in November as they awaited finance minister Rachel Reeves’ budget, while retailers said Black Friday sales disappointed.
UK supermarkets’ market share and sales growth (%)