Food inflation in the United Kingdom increased in March, when the British came out early in Easter eggs and seasonal sweets, prompting chocolate and sweets prices through supermarkets.
According to the latest data from Kantar, grocery enlargement increased to 3.5 % in the four weeks to March 23, an increase of 3.3 % in the previous month. Total supermarket sales grew by 3.2 %, and they are slightly left behind in price increases.
Although Easter decreased later this year, shoppers have already spent 134 million pounds on chocolate eggs and celebration treatments – almost 10 % of the same period last year. A third of the UK's families have already stored hot cakes, indicating a strong seasonal request.
Fraser McVite, head of the retail and consumer department at Kantar, said that supermarkets are fighting hard to maintain the loyalty of shoppers amid continuous cost pressures.
“With the continued rise in prices in the rise, supermarkets are aware of the need to invest to attract shoppers through their doors,” noting that promotional spending amounted to 2.6 billion pounds in March – which is the highest in four years. Reduced elements represent 28.2 % of industry sales.
Although financial pressure has declined slightly since its climax in October 2022, 22 % of British families still say they are struggling financially. The growing cost of groceries is still the third most noticeable attention after energy bills and broader economic expectations.
Lidl was the fastest physical retail stores, sales increased by 9.1 %, prompting the market share to 7.8 %-now less than one percentage behind Morrisones. Meanwhile, OCADO's groceries recorded the largest total growth, as sales increased by 11 %, giving them a 2 % stake in the market.
On the contrary, ASDA was the only major grocery that has spread a decrease in sales, a decrease of 5.6 %, with a decrease in the market's share to 12.5 %. The decrease comes despite ASDA's renewable focus on price cuts and store employees, which is part of the transformation plan that has not yet resulted in results. Last month, the profit warning from ASDA raised a decrease of 4 billion pounds in the market value of the competitors included in Tesco, Sainsbury's and Marks & Spencer.
While Tesco, Sainsbury's, Aldi and M&S all gained their share in the market, SuperMarket CaFES has acquired a decrease in the foot, with the presence of 20,000 visitors less on an annual basis as customers look to save money by getting rid of non -basic spending.
Some retailers responded by closing cafes in the store or partnership with third -party operators for more efficient operation.
As the Easter holiday is approaching, grocers will continue to take advantage of seasonal promotional offers to pay sales – but the effect of high inflation on family budgets is still a major challenge in this sector.