Some 57% of British consumers have been severely or moderately affected by the cost of living crisis so far, and in three months that figure is expected to rise to 76%, according to data from market researcher NielsenIQ.
British consumers are contending with inflation that was 9.9% in August and is expected to rise further this year, driven mostly by the surge in energy prices.
Mike Watkins, NielsenIQ’s UK head of retailer and business insight, said households were shopping around for savings across different retailers, with consumers increasingly focusing on the cost of their weekly groceries to help manage budgets.
“With food prices continuing to rise and household energy costs about to jump in October, it’s no surprise that our data shows that 57% of consumers are saying they have been severely or moderately affected by the cost of living crisis, and in three months this is anticipated to rise to 76%," he said.
"With CPI inflation expected to remain close to current levels for the rest of the year, this will encourage households to shop around and to look for savings across different retailers, with shoppers increasingly focussing on the cost of their weekly groceries to help manage personal finances.”
NielsenIQ's data showed that supermarket sales in the week ending September 10 dipped to £2.48 billion (€2.84 billion) – the lowest level since a lull in the week after Easter.
It said in the four weeks to September 10, some £400 million (€458.4 million) less was spent at supermarkets year-on-year as shoppers reined in spending at the start of autumn.
The market researcher said German-owned discounter Lidl remained the fastest growing grocery retailer over the 12 weeks to September 10, with sales up 9.4% year-on-year, echoing data from rival Kantar published last week.
Market leader Tesco's sales were up 3.6%, while Sainsbury's was up 4.5% and Asda up 5.0%. Morrisons' sales fell 1.7%, while discounter Aldi's were up 3.7%.
NielsenIQ said online's share of the grocery market fell to 11.1%, versus 11.3% recorded last month and 12.3% a year ago.
News by Reuters, edited by ESM. For more retail news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.