UK grocery price inflation has edged up, with supermarket prices 2.5% higher than last year in the four weeks leading up to 4 October. This marks an increase from 2.3% recorded last month, according to data from Worldpanel by Numerator.
Shoppers are increasingly turning to special offers to manage their costs, with spending on promotions rising by more than £250m compared to the previous year. Special offers are proving to be an important tool for making pricier items and larger packs more affordable.
Fraser McKevitt, head of retail and consumer insight at Worldpanel, noted that the cost of living and rising petrol prices are weighing on household budgets. He anticipates that shoppers will continue to lean on promotions to control grocery spending until the Chancellor outlines future plans.
In positive news for Halloween preparations, like-for-like chocolate confectionery prices are 3% lower than a year ago. Approximately 1.2 million households purchased a pumpkin in the latest four weeks, a 10% increase year-on-year.
Among retailers, Lidl saw market share gains over the 12 weeks to 4 October, reaching 8.6% driven by a 7.1% increase in sales of fruit, vegetables, and wine. Ocado's sales increased by 12.4%, outperforming overall online sales growth of 5.5%.
Tesco and Sainsbury's experienced spending increases of 1% and 1.3% respectively, holding market shares of 27.8% and 15.2%. Asda's share is now 11.5%, while Aldi holds 10.5% of the market, with its sales up 0.4% year-on-year. Marks & Spencer's grocery sales rose by 14.9%.