Discount retailers take advantage of cost of living crisis as shoppers head to Aldi and Lidl
Grocery price inflation hit a new high of 4.3% last month, with discount supermarkets luring shoppers as the cost of living escalates.
New data from Kantar reveals the fastest rate of inflation since September 2013, except for the start of the pandemic when households panicked to buy essentials.
Aldi and Lidl were the fastest growing retailers in the three months to February 20, both increasing sales by 3.3%.
Aldi attracted 1.3 million more customers compared to 2021, while Lidl attracted nearly one million more.
Continued supply chain pressures and the potential impact of war in Ukraine are poised to continue driving up prices, said Fraser McKevitt, head of retail and consumer insights at Kantar. .
The analytics firm said food inflation now stood at 3.5% for the three months to February.
Fastest rising prices include tasty snacks, fresh beef and cat food. However, prices fell for bacon, beer, lager and spirits.
Households spent an average of £26.07 less in supermarkets in February as sales of own brands outperformed brands for the first time in three months
Supermarket sales fell 3.7%, with Kantar pointing to the easing of Covid restrictions as well as Britons seeking to cut costs.
“It’s important to note that the drop in monthly expenses is not entirely due to savvy budgeting,” McKevitt added.
“With the official end of Covid restrictions in England, more of us are eating on the go, buying sandwiches, salads and snacks during our lunch breaks and having meals with friends and family.”
It comes as households face soaring energy bills and a hike in National Insurance this spring. Previous forecasts estimated that the average household’s annual grocery bill will rise by £180.
Tesco gained a further 0.3 percentage point in market share, now accounting for 27.7% of the market.
Sainsbury’s market share is now 15.5%, Asda 14.6% and Morrisons 9.8%