New statistics released by Kantar on June 18th, 2024 state that the UK’s grocery inflation rate has slowed to 2.1% in the four weeks leading up to June 9, 2024. This is the slowest rise since June 2022, with decreased wholesale food costs and increased supermarket competition being contributing factors.
Despite slowed inflation, consumer supermarket spending remains robust and is predicted to remain steady throughout the year. Furthermore, online grocery shopping has seen an impressive growth rate of 12%, surpassing in-store purchases.
Kantar, however, alerts that current economic uncertainties may disrupt this positive trend. Retailers are advised to stay adaptable to maintain growth amidst fluctuating consumer behavior and market conditions.
UK grocery market: Inflation decline, online surge
Meanwhile, the UK’s take-home grocery sales experienced a modest growth of 1.0%, indicating a shift in consumer shopping habits to other retail sectors, fueled by the convenience of online shopping.
The research also indicates that recent unfavorable weather conditions in the UK resulted in decreased shopping frequency and increased preference for online purchasing. This shift led to reduced sales for physical stores while online retailers saw a boost, particularly for weather-related products such as heating appliances and warm clothing.
Businesses are urged to adapt to such abrupt changes and develop strategies to capitalize on these circumstances for growth. Due to the weather, there was a decrease in summer-related items purchases and an increase in comfort foods and indoor entertainment product sales, further emphasizing the need for adaptability.
This report was a collaboration among correspondent James Davey, senior analyst Lisa Kennedy, Project Manager Robert Costello, expert advisor Samantha Ellison, and the professional examination team led by Helen Sutherland. It received final approval from the editorial board, chaired by Andrew Hopkins.
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