Shoppers at major supermarkets like Tesco, Asda, Morrisons, and Sainsbury’s are facing a renewed warning as grocery prices rise for the first time in over a year. This comes after a brief period of price stability, during which shoppers experienced a consistent increase in their weekly shopping bills due to rising prices for essential staples like milk, bread, and cereal, alongside increased energy bills and petrol costs.
Grocery analysis firm Kantar reported that supermarket price inflation has risen to 1.8% compared to last year, up from 1.6% in July. Although inflation has been slowing down, this increase signifies that prices are still on the rise, despite not decreasing. This marks a return to the average inflation levels seen in the five years leading up to the cost-of-living crisis.
While some products like kitchen towels and baked beans have seen price reductions, averaging 7% and 5% cheaper than last year, the overall trend indicates that supermarket prices are still climbing. According to Kantar’s head of retail and consumer insight, Fraser McKevitt, “With this kind of pricing spread, shoppers will find that the type of product they’re putting in their baskets will really dictate how much they pay.”
Amidst this price increase, Sainsbury’s has seen a significant boost in market share, experiencing its largest year-on-year gain since July 1997, rising by 0.5 percentage points over the quarter compared to the same period last year. This makes them the fastest-growing traditional supermarket, with sales increasing by 5.2%.
Meanwhile, Tesco has continued its streak of winning market share every month since August 2023, reaching 27.6% and experiencing a 4.9% increase in sales. Online-only retailer Ocado also saw a notable rise in sales, growing by 11.3%.
In terms of affordability, consumer magazine Which? named Aldi as the cheapest retailer for the second consecutive month, with Lidl coming in second and Asda in third place.
