Grocery inflation eases to 2.1% as heatwave boosts summer staples

Tesco Waitrose ice cream
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Grocery price inflation eased to 2.1 per cent in the four weeks to 9 August, its lowest level since October 2024, as hot weather sent shoppers reaching for ice cream, suncream and other summer staples.

Take-home grocery sales rose 2.5 per cent over the period, according to Worldpanel by Numerator, while inflation slowed for a fifth consecutive month.

Average grocery spend stood at £410 over the four weeks, down £14.24 on the previous period as spending returned to more normal levels following a stronger July.

Worldpanel by Numerator business unit director Sally Ball said: “With inflation slowing again, this marks the fifth consecutive month of easing prices.

“Shoppers are feeling the relief with 39 per cent now feeling financially comfortable, marking the highest level of financial confidence since November 2021.”

However, she added that one in five households still reported struggling financially, with 30 per cent of those shoppers more likely to prioritise grocery essentials over discretionary summer spending such as holidays and travel.

Promotions also played an increasingly important role in shoppers’ budgets, with 31.3 per cent of grocery sales bought on deal during the latest four-week period, the highest proportion so far this year.

Premium own-label sales growth returned to double digits at 11.1 per cent, while 96 million shopping trips included a value own-label product.

Heatwave sends ice cream and suncream sales soaring

The prolonged spell of hot weather had a clear impact on what shoppers put in their baskets.

Suncream sales jumped 58.4 per cent, with under-45s driving the strongest growth, while ice cream and sorbet sales rose 26.1 per cent year on year.

Frozen fruit sales surged 48.1per cent, despite the sustained heat putting pressure on freezer aisles, with shoppers making an additional 6.2 million trips to the category compared with the same period last year.

Summer convenience foods also performed strongly, with dips up 23.3 per cent, coleslaw rising 23.1 per cent and potato salad sales increasing 22 per cent.

Chilled quiche grew 15.8 per cent, chilled finger foods by 15.2 per cent and chilled olives by 13.3 per cent, as shoppers opted for lighter meals and grazing occasions.

Soft drink spending was up 15.1 per cent.

Ball said: “The continued heat across the UK has certainly impacted the way people are eating and drinking.

“Earlier this summer we saw that mealtimes were being pushed later in the day, with 13 per cent of evening meals now eaten after 8pm.

“Shoppers have been trying to stay cool this month, with soft drinks growing 15.1 per cent in spend, while the freezer aisle saw shoppers stocking up on ice cream, sorbet and frozen fruit to beat the heat.”

Ocado remains fastest-growing grocer as Lidl gains share

Ocado remained the fastest-growing grocer over the 12 weeks to 9 August, with sales up 13.1 per cent year on year.

Its market share increased by 0.2 percentage points to 2.1 per cent.

Lidl recorded the biggest market share gain, adding 0.5 percentage points to reach 8.8 per cent, while sales rose 8.5 per cent.

The discounter also attracted the most additional shoppers, with 736,000 more customers visiting compared with the same period a year earlier.

Aldi added 488,000 shoppers, taking its market share to 10.7 per cent, although sales growth was more modest at 1.1 per cent.

Asda’s sales fell 0.2 per cent year on year, but Worldpanel said this represented its best performance since March 2024. The supermarket held an 11.5 per cent market share.

Sainsbury’s and Morrisons each gained 0.1 percentage points of share, taking them to 15.2 per cent and 8.5 per cent respectively. Sales rose 3.5 per cent at Sainsbury’s and 3.3 per cent at Morrisons.

Co-op sales increased 5.1 per cent, lifting its share to 5.5 per cent, its highest level since September 2025.

Tesco remained Britain’s largest grocer with 27.8 per cent of the market, as sales increased 1.8 per cent.

Waitrose and Iceland held share flat at 4.5 per cent and 2.3 per cent respectively, with sales rising 2.8 per cent and 2.4 per cent.

Meanwhile, grocery-only sales at M&S jumped 15.9 per cent over the 12-week period.

Online remained the fastest-growing grocery channel, with shopper visits up 8.3 per cent. However, the average online basket fell to £86.28, £1.13 lower than a year ago.

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Grocery inflation eases to 2.1% as heatwave boosts summer staples

Tesco Waitrose ice cream

Grocery price inflation eased to 2.1 per cent in the four weeks to 9 August, its lowest level since October 2024, as hot weather sent shoppers reaching for ice cream, suncream and other summer staples.

Take-home grocery sales rose 2.5 per cent over the period, according to Worldpanel by Numerator, while inflation slowed for a fifth consecutive month.

Average grocery spend stood at £410 over the four weeks, down £14.24 on the previous period as spending returned to more normal levels following a stronger July.

Worldpanel by Numerator business unit director Sally Ball said: “With inflation slowing again, this marks the fifth consecutive month of easing prices.

“Shoppers are feeling the relief with 39 per cent now feeling financially comfortable, marking the highest level of financial confidence since November 2021.”

However, she added that one in five households still reported struggling financially, with 30 per cent of those shoppers more likely to prioritise grocery essentials over discretionary summer spending such as holidays and travel.

Promotions also played an increasingly important role in shoppers’ budgets, with 31.3 per cent of grocery sales bought on deal during the latest four-week period, the highest proportion so far this year.

Premium own-label sales growth returned to double digits at 11.1 per cent, while 96 million shopping trips included a value own-label product.

Heatwave sends ice cream and suncream sales soaring

The prolonged spell of hot weather had a clear impact on what shoppers put in their baskets.

Suncream sales jumped 58.4 per cent, with under-45s driving the strongest growth, while ice cream and sorbet sales rose 26.1 per cent year on year.

Frozen fruit sales surged 48.1per cent, despite the sustained heat putting pressure on freezer aisles, with shoppers making an additional 6.2 million trips to the category compared with the same period last year.

Summer convenience foods also performed strongly, with dips up 23.3 per cent, coleslaw rising 23.1 per cent and potato salad sales increasing 22 per cent.

Chilled quiche grew 15.8 per cent, chilled finger foods by 15.2 per cent and chilled olives by 13.3 per cent, as shoppers opted for lighter meals and grazing occasions.

Soft drink spending was up 15.1 per cent.

Ball said: “The continued heat across the UK has certainly impacted the way people are eating and drinking.

“Earlier this summer we saw that mealtimes were being pushed later in the day, with 13 per cent of evening meals now eaten after 8pm.

“Shoppers have been trying to stay cool this month, with soft drinks growing 15.1 per cent in spend, while the freezer aisle saw shoppers stocking up on ice cream, sorbet and frozen fruit to beat the heat.”

Ocado remains fastest-growing grocer as Lidl gains share

Ocado remained the fastest-growing grocer over the 12 weeks to 9 August, with sales up 13.1 per cent year on year.

Its market share increased by 0.2 percentage points to 2.1 per cent.

Lidl recorded the biggest market share gain, adding 0.5 percentage points to reach 8.8 per cent, while sales rose 8.5 per cent.

The discounter also attracted the most additional shoppers, with 736,000 more customers visiting compared with the same period a year earlier.

Aldi added 488,000 shoppers, taking its market share to 10.7 per cent, although sales growth was more modest at 1.1 per cent.

Asda’s sales fell 0.2 per cent year on year, but Worldpanel said this represented its best performance since March 2024. The supermarket held an 11.5 per cent market share.

Sainsbury’s and Morrisons each gained 0.1 percentage points of share, taking them to 15.2 per cent and 8.5 per cent respectively. Sales rose 3.5 per cent at Sainsbury’s and 3.3 per cent at Morrisons.

Co-op sales increased 5.1 per cent, lifting its share to 5.5 per cent, its highest level since September 2025.

Tesco remained Britain’s largest grocer with 27.8 per cent of the market, as sales increased 1.8 per cent.

Waitrose and Iceland held share flat at 4.5 per cent and 2.3 per cent respectively, with sales rising 2.8 per cent and 2.4 per cent.

Meanwhile, grocery-only sales at M&S jumped 15.9 per cent over the 12-week period.

Online remained the fastest-growing grocery channel, with shopper visits up 8.3 per cent. However, the average online basket fell to £86.28, £1.13 lower than a year ago.

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