Following the swell of inflation, Brits are starting to feel the pinch. Food inflation currently stands at 2.9%, meaning that over the past 3 months we’ve tacked on an additional £27 to our grocery bills. According to Chris Hayward, consumer specialist at Kantar Worldpanel: “That £27 may not seem like much, but if inflation continues at its current rate; over the course of a year, that would mean an extra £119 spent on groceries per household.”
Thanks to our tightened purse strings, shoppers are increasingly deviating from the ‘big four’ supermarkets in an effort to stretch their money that bit further. Aldi and Lidl are the big winners here. Together, the pair have grown at their fastest rate since January 2015, reaching a record market share of 12% with combined sales rising 19.2%. In fact, almost two-thirds of Brits are now choosing to shop with the German discounters – that’s an additional 1.1 million households this year!
Another money saving trend making a real impact across all supermarkets has been the growth of own-label products. In comparison to branded products (which saw a sales growth of just 0.6%), own-label products have grown by 6%. In part this can be attributable to the slashing of product ranges by major supermarkets such as Tesco in order to create simpler supply chains and cut costs. As a result of this, new branded product launches appear to be a riskier move than investments in own-label products. But in our eyes, as long as Waitrose continues to keep its essential range stocked with reduced fat pâté and limoncello dessert, long may own-label products reign.