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Indies and symbols see sales drop as take-home grocery sales rise

Independent and symbol stores have seen sales fall compared to last year, according to Kantar data

Independent and symbol stores have seen sales drop by 2.8% compared to last year, when comparing the 12 weeks to 14 May 2023 to the same 12-week the following year, according to Kantar data. Co-op also fared a loss in sales by 0.6%. This is despite take-home grocery sales rising by 2.9% over the four weeks to 12 May.

The news of a sales drop among independent stores also comes as grocery price inflation falls to 2.4%, the lowest level since October 2021, and own-label lines are “proving resilient”, according to Fraser McKevitt, head of retail and consumer insight at Kantar.

He continued: “Grocery price inflation is gradually returning to what we would consider more normal levels. It’s now sitting only 0.8 percentage points higher than the 10-year average of 1.6% between 2012 and 2021, which is just before prices began to climb. 

“Typically, an inflation rate of around 3% is when we start to see marked changes in consumers’ behaviour, with shoppers trading down to cheaper items when the rate goes above this line and vice versa when the rate drops. However, after nearly two and a half years of rapidly rising prices, it could take a bit longer for shoppers to unwind the habits they have learnt to help them manage the cost of living crisis. Own-label lines are still growing faster than brands, making up over half [52%] of total spending. Sales of premium own label ranges continue to increase too, up by 9.9% compared with a year ago.” 

Meanwhile, in a sign that online grocery shopping is drawing customers in, Ocado was again the fastest growing grocer over the 12 weeks to 12 May, with sales up by 12.4%. Meanwhile, discounters also saw gains as Lidl reached a new record-high market share of 8.1%, fuelled in part by its bakery counters, as well as its loyalty scheme.

Categories that saw recent success for grocers include BBQ foods due to the bank holiday weekend, with burger sales climbing by 13%, while beer and wine sales shot up by 9% and 21% respectively versus the Friday, Saturday and Sunday of the week before.

McKevitt added that stores should begin to prepare for upcoming major sporting events as these can have a “big impact on grocery sales”, particularly in categories like alcohol.

“Especially if it’s paired with warmer temperatures, this year’s summer of sport could deliver a welcome boost for the sector,” he added. 

Read more Kantar news

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