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Poultry among fastest-rising grocery prices

Michael BarkerBy Michael BarkerAugust 17, 20223 Mins Read
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Rising poultry prices are contributing to changing shopper habits as the cost-of-living crisis hit the grocery sector.

According to Kantar, supermarket sales rose by 2.2% in the 12 weeks to August 7. That is the fastest growth the industry has seen since April 2021 as the market continues its recovery post pandemic, despite price inflation now challenging the sector.

The figures come as grocery price inflation hits 11.6% over the past four weeks, the highest level since Kantar first started tracking the data this way in 2008. Fraser McKevitt, head of retail and consumer insight at Kantar, explained: “As predicted, we’ve now hit a new peak in grocery price inflation, with products like butter, milk and poultry in particular seeing some of the biggest jumps. This rise means that the average annual shop is set to increase by a staggering £533, or £10.25 every week, if consumers buy the same products as they did last year.

“It’s not surprising that we’re seeing shoppers make lifestyle changes to deal with the extra demands on their household budgets. Own-label ranges are at record levels of popularity, with sales rising by 7.3% and holding 51.6% of the market compared with branded products, the biggest share we’ve ever recorded.”

With inflation high and a potential recession later this year, comparisons against the last financial crisis are becoming visible, McKevitt said: “People are shopping around between the retailers to find the best value products, but back in 2008 there was much more of a reliance on promotions. It’s harder to hunt out these deals in 2022 – the number of products sold on promotion is at 24.7% for the four weeks to 7 August 2022, while 14 years ago it was at 30%. Instead, supermarkets are currently pointing shoppers towards their everyday low prices, value-ranges and price matches instead.

“Over the past month we’ve really seen retailers expand and advertise their own value ranges across the store to reflect demand. Consumers are welcoming the different choices and options being made available to them on the shelves, with sales of own-label value products increasing by 19.7% this month. As an example, ASDA’s Just Essentials line, which launched this summer, is already in 33% of its customers’ baskets.”

Lidl remains the fastest-growing grocer, with sales up by 17.9% over the latest 12 weeks, raising its market share to 7%. Aldi also performed strongly, and its market share increased by 0.9 percentage points to 9.1%. Together Lidl and Aldi have gained 1.8% of British grocery sales over this period, representing a £2.3 billion annual shift in spending towards the discounters.

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Michael Barker

Michael Barker is a food industry journalist with 20 years of experience covering the UK farming and food production sector. He is a former fresh foods editor at The Grocer and editor of the Fresh Produce Journal, and is a regular contributor to Poultry Business.

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