The latest data reveals a significant drop in grocery price inflation for the seventh consecutive month, standing at 11% for the four weeks leading up to 1st October 2023, marking the lowest rate since July 2022. Concurrently, take-home grocery sales saw a notable rise of 9.1% compared to the previous year.

Tom Steel, strategic insight director at Kantar, remarked, "Grocery price inflation remains high, but consumers will find relief in its continued decline. Notably, staple food prices are showing signs of reduction, contributing to a broader easing of inflation. For instance, the average price of a 250g pack of butter is now 16 pence less than a year ago."

Here are the key highlights:

• Promotional Spending Surges: Promotions accounted for over a quarter of all sales in the latest 12-week period, reaching 26.5%, marking the highest level since June 2022.

• Sunshine Fuels Sales: Unusually warm weather in September extended the season for summer favourites. Sales of ice cream, burgers, and dips saw spikes of 27%, 19%, and 10%, respectively. Sun care product sales more than doubled, reflecting people's enjoyment of the extended summer.

• Lidl Leads the Way: Lidl emerged as the fastest-growing retailer this month, with a sales increase of 15.2%. This marks the first time Lidl has taken the lead since April 2023 and boosts its market share to 7.6%, up 0.5 percentage points year-on-year.

• Aldi's Success: Fellow discounter Aldi recorded a sales increase of 14.9%, expanding its market share to 9.9%, up by 0.6 percentage points compared to the previous year.

• Sainsbury's Strength: Sainsbury's grew its market share to 14.8%, with sales up 9.1% compared to the previous year.

• Online Shopping Resurgence: Total online trips increased year-on-year for the first time since December 2021, with a 3.1% rise this month. Reports suggest that Waitrose might join forces with Amazon for grocery delivery services, as Waitrose maintains a 4.6% share with sales growth at 5.3%.

• Other Retailers: Co-op holds a 6.1% market share with a sales increase of 3.3%. Iceland's sales rose by 2.8%, and Ocado achieved a 9.6% sales growth, capturing 1.7% of the market.

Amidst these developments, the grocery landscape continues to evolve, reflecting changing consumer preferences and economic factors

This article has been abridged from this original article featured by Kantar on the 10th October 2023.