Lidl was once again the fastest growing retailer this month as grocery price inflation has dropped below 10% for the first time since July 2022.
The discounter’s sales up 14.7% in the 12 weeks to 19 October as Lidl’s market share hit 7.6%.
Aldi and Waitrose grew sales by 13.2% and 5.4% respectively, taking 9.7% and 4.6% of the market, and both grocers were one of the only two to increase the number of shoppers year-on-year.
Of the traditional supermarkets, Sainsbury’s was the fastest growing with sales having increased 10.1% and it now holds 15.2% of the market, up from 14.9% last year.
According to the latest data from Kantar, take-home grocery sales over the same period rose by 7.4% compared with 2022.
Grocery price inflation fell to 9.7% in the four weeks to 19 October.
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While Kantar UK head of retail and consumer insight Fraser McKevitt said the drop in inflation will come as “positive news” for consumers, he added that they “will still be feeling the pinch”.
“We’re only seeing year-on-year price falls in a limited number of major categories including butter, dried pasta and milk.”
However, McKevitt said that retailers have been slowing the rate of price increases by increasing promotions.
“Every single one of the grocers increased the proportion of sales through deals versus last year which is something that has only happened on one other occasion in nearly ten years.”
Consumer spending on promotions now makes up 27.2% of total grocery sales, which is the highest level since Christmas 2022.
As well as looking to promotions, he said that shoppers continue to trade down, with own-label lines having grown ahead of branded counterparts every month since February 2022.
He added: “The picture may well change as we go headlong into the festive period, when shoppers typically turn more to brands. The gap between own-label and branded goods is at its narrowest since spring last year. Branded sales increased by 6.7% in the latest month, raising the distinct possibility that they will push ahead by Christmas.”
