More Brits turn to Aldi as grocery inflation reaches record high

BLOOMBERG

Inflation on British groceries surged to a fresh record as shoppers turn to discount supermarkets and own-label goods to counter rising prices.
Grocery price inflation reached 17.1% in the four weeks to February 19, up from 16.7% in January, the highest level since Kantar started tracking the data in 2008. The increase in prices means the average annual shop is set to rise by £811 ($976).
Discounters are gaining ground as shoppers try to save money. Aldi’s market share rose to a record 9.4%, with sales growing 26.7% in the period. Lidl sales rose 25.4%, bringing its market share to 7.1%. Combined, Aldi and Lidl now have 16.5% of the market, up from 14.1% a year earlier before the cost-of-living crisis deepened. Two-thirds of households said they’re more concerned about food and beverage prices than the public sector strikes rippling through the nation, or even climate change, while one-quarter said they’re struggling financially, according to Kantar’s research.
“The battle to offer best value for consumers continues in this intensely competitive sector, particularly as the traditional retailers look to protect market share from the discounters,” said Fraser McKevitt, head of retail and consumer insight at Kantar.
“Own label ranges have been one obvious focus and shoppers have consistently bought them over brands since February last year.”
The data comes ahead of restrictions that some supermarkets have put in place amid a shortage of fruit and vegetables including tomatoes, cucumbers and peppers.
“We’ll be closely following the impact of these shortages on sales in the coming weeks,” McKevitt said.