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- Kantar said grocery prices rose 2% in September
Shoppers took September’s record wet weather as a cue to stock up on hot chocolate, soup and even pumpkins, new supermarket data suggests.
Record monthly rainfall determined how shoppers spent their money last month, with hot chocolate sales soaring 28 percent and soups soaring 7 percent.
Households also bought Halloween prematurely, and retailers hope it will spark a boost in sales.
Fraser McKevitt, head of retail and consumer insights at Kantar, said: “Pumpkins are flying off the shelves, with sales almost doubling last September’s figures, at just under £1m in the last four weeks.”
Premature? Shoppers took the wet weather as a cue to stock up on items in September that are usually reserved for a little later in the year, when it’s cold.
He added: “Confectionery products have also seen a 9 per cent increase, and spending is expected to increase further this month as trick-or-treating approaches: confectionery sales rose 16 per cent in the second half of October last year”. ‘
Kantar figures show grocery prices rose marginally last month as customers sought discounts to avoid increases.
It said annual food price inflation was 2 percent in the four weeks to September 29, down from 1.7 percent in the previous four-week period.
Prices rose the fastest for refrigerated soft drinks, chocolate and skin care, while household paper products and dog and cat food fell the fastest.
The latest data from the Office for National Statistics showed headline inflation held at 2.2 per cent in August.
Over the summer, supermarkets ran several promotions to attract shoppers during the Euro Cup, the Olympics and the back-to-school season.
Kantar figures show spending on promoted items continued to rise, rising 7.4 per cent last month, while full-price sales rose just 0.3 per cent.
Value wins: Discounters Aldi and Lidl increase market share as prices continue to rise
Ocado grows faster; Asda struggles
The battle between supermarkets will only intensify as we approach the festive period.
McKevitt said: ‘In the fiercely competitive retail sector, the battle for value has begun. Supermarkets are doing everything they can to keep costs down for consumers and thanks to their efforts prices in some categories are falling.’
The UK’s largest discount retailer, Aldi, saw 1.8 per cent growth in sales over the past 12 months and has 9.8 per cent of the grocery market.
Lidl, which holds 8.1 percent of the market, saw sales rise by 8.8 percent in the last 12 months.
The pair’s core offering of everyday low prices has resonated with value seekers as grocery prices continue to rise.
Their rapid expansion means they have grown at a much faster rate than their rivals. Aldi now has 1,029 stores in Britain, while Lidl has 960.
Despite the rush to value, Ocado was the fastest-growing supermarket for the eighth month in a row, increasing sales by 10 per cent in the last 12 weeks.
Tesco continues to have a stronghold in the grocery market, increasing its share from 27.4 per cent to 28 per cent, with sales growth of 5.2 per cent over the last year.
Sainsbury’s also managed to steadily increase its sales by 5.1 per cent and captured 15.2 per cent of the market.
Asda continues its steady decline with a 5.1 per cent drop in sales and has lost market share (from 13.7 per cent to 12.6 per cent) in the last year.
Critics say quality and customer experience have deteriorated since the private equity acquisition.
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