James Davey

LONDON (Reuters – British grocery prices inflation rose by 2.1% between Oct. 31 and October 31, according to Kantar market researcher. The figure is the highest since August 2020. It also adds to pressure on household finances.

The Bank of England shattered market expectations of an interest-rate hike last week. However, overall inflation is on track to reach almost 5%.

Kantar reported that grocery prices have been rising fast in certain markets, such as canned colas, crisps, and savoury snacks. However, they are falling in fresh meats, vegetables, and pet treats.

“Grocery … inflation hit its highest rate since August 2020, when retailers were still cutting promotions (during the pandemic) to maintain stock on the shelves,” said Fraser McKevitt, head of retail and consumer insight at Kantar.

He said, “As the prices rise in some categories, shoppers can continue to shop at multiple supermarkets to get the best deal.”

McKevitt stated that the average household visits 3.3 supermarkets each month to get the best price.

Kantar stated that UK grocery sales dropped 1.9% over the 12-weeks to October 31st, but increased 7.3% in comparison with 2019, prior to the effect of the pandemic.

The general trend toward smaller, more frequent shopping trips is set to continue.

Kantar reported that households went to the supermarket an average of 15.7 times per month, which is slightly more than the 15.3 visits in 2020.

But, the number of trips consumers make per month is still 40 million less than in 2019.

McKevitt stated that “at this rate of change it would take three to five years to return to our old shopping habits.”

For the second straight month, 12.4% of all grocery retail sales was made online.

Kantar stated that Britons were preparing to celebrate Christmas this year by buying mince pies from 4.7 million homes in October, and Christmas puddings from 1.6 million. In the last four weeks, frozen poultry sales have increased by 27% year over year.

Tesco (OTC) was market leader and saw its sales grow year over year during the twelve weeks.

Growth in sales and market share (%)

12 weeks to 12 weeks to % of change in

Oct. 31 2021 Nov. 1 2020 sales

Tesco 27.6 27.0 0.3

Sainsbury’s 15.2 15.3

Asda 14.3 14.4

Morrisons 10.0 10.2

Aldi 7.9 7.8 -0.4

Co-operative 6.3.6.4 -3.8

Lidl 6.2, 6.1 0

Waitrose 5.0 5.1 -2.7

Iceland 2.3.2.3 -3.9

Ocado (LON:) 1.7 1.7 -2.1