Independent and symbol stores have witnessed their fourth month of sales slumping, new Kantar data has found, as grocery price inflation sees its first rise since March 2023, reaching 1.8%.
In the four weeks to 4 August 2024, symbols and indies lost 3.1% share year on year, following a 5.5% drop in July, 4.1% fall in June and 2.8% dip in May.
However, rising grocery prices, up from 1.6% on the previous month, did not deter sales of summer-based items across all retailers. Sales of ice cream and burgers increased by 23% and 32% respectively. Chilled prepared salad sales rose by 22%.
Wine sales were up 35% on the day of the Olympic opening ceremony. Meanwhile, £10m worth of beer was sold on the day of the Euro football final.
Sales of alcohol and BBQ products weren’t the only areas in growth. Summer colds and Covid-19 meant 28% more was spent on cough lozenges compared to the previous year.
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Fraser McKevitt, head of retail and consumer insight at Kantar, said: “Having reached its lowest rate in almost three years in July, August saw inflation nudge up again slightly. While this is noticeable following 17 straight months of falling rates, it actually marks a return to the average levels seen in the five years before the start of the cost of living crisis.”
Retailers are reportedly seeing prices now rising across 182 product categories, while the costs in 89 others fall. Kitchen towels and baked beans are now 7% and 5% cheaper respectively than they were last year.
McKevitt said this mixed picture will see consumers gravitate towards discounts and promotional deals in an attempt to keep grocery bills down.
“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,” he explained. “They’re continuing to take advantage of the wide range of promotions being offered by the grocers to help keep the price of shopping down. Spending on deals rose by 15%, while sales of products at their usual price saw no increase.”
Meanwhile, take-home sales at grocers rose by 3.8% in the four weeks to 4 August 2024 compared to the same period last year.
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