UK grocery price inflation picked up slightly in September, while Tesco PLC achieved its largest market share since 2017, according to data from Kantar on Tuesday.

Kantar on Tuesday reported that in the four weeks to September 29, grocery price inflation accelerated to 2.0% from 1.7% in August. Take-home grocery sales also increased 2.0% on-year during the period.

For the wider 12-week survey, grocery sales rose 2.9% year-on-year to £33.39 billion.

‘Prices are rising fastest in markets such as chilled soft drinks, chocolate confectionery and skin care and are falling fastest in household paper products, dog food and cat food,’ Kantar said.

Kantar’s inflation figure is based on over 75,000 identical products compared annually in the proportions purchased by British shoppers.

However, as companies compete to attract shoppers, they have reduced prices on ‘some essentials’ despite the growing inflation.

Spending on promoted items jumped 7.4% ‘as households sought to manage their finances’, while spending on full-price items rose just 0.3%.

Kantar’s report comes as consumers and businesses alike await the new UK government’s first autumn budget, which Chancellor Rachel Reeves will deliver on October 30.

‘In the fiercely competitive retail sector, the battle for value is on,’ said Kantar’s Head of Retail & Consumer Insight Fraser McKevitt. ‘Supermarkets are doing what they can to keep costs down for consumers and thanks to their efforts the prices in some categories are falling.’

Consumers increased their spending however on ‘classic warming staples’ such as soup and hot chocolate, which Kantar attributed to much of the UK experiencing record monthly rainfall last month.

Sales of pumpkins doubled while confectionary sales increased, with consumers evidently looking forward to Halloween, and ‘spending is expected to ramp up further this month as trick or treating approaches’, McKevitt added.

Kantar also reported that supermarket chain Tesco achieved a 28.0% market share in the 12 weeks to September 29, up from 27.4% a year earlier, and its largest since December 2017. Its sales rose 5.2% to £9.33 billion from £8.88 billion.

J Sainsbury PLC sales increased 5.1% during the quarter to £5.06 billion from £4.82 billion, with its market share climbing to 15.2% from 14.8%.

Ocado Group PLC ‘was the fastest growing grocer for the eighth month running’, with sales rising 10% annually to £598 million from £544 million, Kantar said. Its market share edged higher to 1.8% from 1.7%.

German discount chains Aldi and Lidl had mixed fortunes as far as market share goes. Aldi’s market share decreased slightly to 9.8% from 9.9%, though Lidl’s rose to 8.1% from 7.6%.

Copyright 2024 Alliance News Ltd. All Rights Reserved.