Consumers turn to supermarkets’ cheaper own-label products; oil prices extend losses as traders worry about demand drop from China a
Grocery price inflation in the UK hit 5.2% in March, the highest since April 2012, according to the latest figures from data analytics firm Kantar.
As costs rise, consumers are turning to own-label products which tend to be cheaper than branded ones, and now account for 50.6% of all spending (versus 49.9% this time last year).
It’s no surprise that sales are down over the latest period as consumers are now more confident eating out of the home again. As well as enjoying meals out with friends and families, people will have also been grabbing food and drink on the go from supermarkets while travelling or at work. Those sales aren’t included in these take-home figures, but they will be adding to the grocers’ overall performance.
What we’re really starting to see is the switch from the pandemic being the dominant factor driving our shopping behaviour towards the growing impact of inflation, as the cost of living becomes the bigger issue on consumers’ minds.