Prices at UK supermarkets are rising faster than expected, according to industry analysts. The UK grocery market is set to slow with food inflation predicted to exceed five per cent in the coming months, according to a report published yesterday by Kantar Worldpanel. Grocery prices rose by 4.8 per cent in the 12 weeks to July 11 compared to a year ago, rising from 4.6 per cent in the middle of May.
The research revealed that of the top four supermarkets only Morrisons saw year-on-year trading increase ahead of the market average, with sales rising 5.6 per cent; its market share rose slightly to 11.9 per cent. German discount retailers operating in the UK experienced an increase in sales; Aldi’s and Lidl’s sales rose by 20.2 and 15.6 per cent respectively compared to the same period last year. The two stores account for 6.1 per cent of the overall market. Waitrose increased its market share by 0.2 per cent to 4.3 per cent with sales increasing by nine per cent year-on-year. Asda’s market share dropped to 16.5 per cent from 16.8 per cent a year ago. Sainsbury’s market share remained at 16.1 per cent. Tesco remains the market leader with 30.6 per cent market share.
“The increasing polarisation of the grocery market looks set to stay as consumers turn to the discounters to cut their budgets while others continue to spend in Waitrose,” said Martin Whittingham, director at KantarWorldpanel. (21 July)
© 2011 - ESM: European Supermarket Magazine
