Grocery price inflation has eased to 4.9% in the latest monthly figures, down from 5% last month and 5.2% in July. Despite the downward trend, households continue to face significant pressure from rising food costs, according to market research firm Worldpanel by Numerator.
Fraser McKevitt, head of retail and consumer insight at Worldpanel, said: "Prices might not be climbing quite as quickly, but they're still on the rise and the battle between own-label lines and brands continues as household finances remain tight." The data shows consumers are increasingly turning to cheaper alternatives as financial pressures persist.
Supermarket own-label products now account for 51.2% of all grocery sales, up from 50.9% a year ago. Sales of these budget-friendly alternatives grew by 5.9%, marginally outpacing branded products at 5.3%, while premium own-label goods surged by 10.3%.
Back-to-school shopping surge
The return to school triggered sharp increases in lunchbox essentials compared to the previous fortnight. Yogurt sales jumped by 26%, sliced cooked meats rose by 17%, and cheddar cheese climbed by 24%. While sandwiches still feature in more than half of children's lunchboxes, some families are switching to alternatives like cooked poultry.
School uniform sales through grocery retailers grew by 8.4% over the summer, outperforming the broader market. McKevitt said: "The grocers clearly did their homework on back-to-school fashion. Value is still at the front of shoppers' minds, and retailers have tapped into this. Average prices have fallen, and buyers have increased their basket sizes as they aim to make the most of the discounts on the table."
Families are also embracing the second-hand market, with 13.1% of schoolwear shoppers buying pre-worn items. This trend reflects the continued focus on value as household budgets remain stretched.
Retail market performance
Tesco strengthened its market position, reaching a 28.4% share over the 12 weeks to September 7th, up 0.8 percentage points year-on-year. Britain's largest grocer achieved 7.7% growth in spending, its highest rate since December 2023, with gains across all channels.
Ocado maintained its position as the fastest-growing retailer with sales rising by 11.9%. Sainsbury's increased spending by 5.4%, lifting its market share to 15.1%, while Marks & Spencer's grocery sales grew by 5.9%.
Discount retailers continued their strong performance, with Lidl leading bricks-and-mortar growth at 11% and increasing its market share to 8.2% from 7.8%. Aldi maintained its 10.7% market share with spending growth of 4.7%.
Sources used: "Worldpanel by Numerator" Note: This article has been edited with the help of Artificial Intelligence.
