UK Grocers - comment

Kantar’s data is out this morning, with the overall market showing 4.8% growth. Lidl and Aldi lead the way with 20% increases year on year (driven by increased number of stores). Iceland held its market share, growing marginally faster than the market at 5.3%.

However, there are two more important data points from the Kantar release this morning. Food inflation is now running at 13.9%, a record high since Kantar began tracking prices in 2008. Consumers are increasingly moving to own label items to achieve savings. The increase in frozen food sales has only been marginal, which was expected to increase due to lower food waste.

Secondly, more worrying from a consumer confidence viewpoint, sales of energy-saving devices have increased - air fryers, slow cookers sandwich makers are up c.50%, and a nod to potential blackouts in the UK energy market, thermal underwear, candles and electric blankets/duvets have all seen increases (note not sure what use an electric blanket is in a blackout!).