Grocery price inflation has fallen to its lowest level in over 12 months at 12.2%, marking the sixth consecutive month decline.
According to the latest data from Kantar, take-home sales from the grocers rose by 7.4%, up from 6.5% last month.
However, Kantar head of retail and consumer insight, Fraser McKevitt, said that the dip in grocery price inflation “won’t be a number to celebrate for many households,” as 95% of consumers are still worried about the impact of rising grocery prices.
While Sainsbury’s and Tesco were the fastest growing traditional retailers with sales up 9.1% and 9.3% respectively, Aldi grew sales by 17.1% and Lidl by 16%.
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The discounters have made some of the biggest market share gains over the past year, capturing 17.7% of the sector between them.
McKevitt said this comes as “consumers continue their hunt for value” and follows “the boost in own-label sales which dominate Aldi and Lidl’s shelves”.
Own-label sales grew by 9.9% in the latest month, and supermarket lines now make up over half of everything we buy, up from 48% in August 2013 which is equivalent to a £3bn shift in sales away from brands.
This discounter model of offering everyday low value and fewer promotions has also spread across the wider market as just 26% of spending on deals in comparison to 38% a decade ago.
McKevitt added that while Kantar expects Aldi and Lidl’s strong performance to continue as inflation remains high, “growth rates for both the discounters have been slowing in recent months as they annualise against rapid rises last year”.
