Branded grocery sales grew faster than own label last month as inflation pushed many shoppers to trade eating out for more luxurious treats at home.
Sales of branded grocery items grew by 6.1% in the four weeks to 10 August, putting them ahead of own-label alternatives which were up by 4.1%. This is the largest gap in favour of brands since March 2024, according to Worldpanel, formerly known as Kantar.
Premium own-label sales rose by 11.5% although remain a far smaller part of the market.
Grocery price inflation is now 5.0%, down slightly from 5.2% a month earlier. “We’ve seen a marginal drop in grocery price inflation this month, but we’re still well past the point at which price rises really start to bite, and consumers are continuing to adapt their behaviour to make ends meet,” said Fraser McKevitt, head of retail and consumer insight at Worldpanel.
Brits are adjusting their shopping habits to cope with higher prices, with fast-food restaurants seeing visitors fall 6% over the three months to mid-July compared to last year. It is only coffee shops which bucked the trend, McKevitt said.
By contrast, branded sales now make up 46% of all grocery spending and are particularly dominant in categories such as personal care, confectionery, and soft drinks, where they account for more than £3 in every £4 through the tills.
Lidl and Ocado maintained their momentum through the summer and were tied for top spot as the fastest-growing grocers over the 12 weeks to 10 August. Sales at both retailers grew by 10.7% compared to the same period last year.
Lidl’s share of the market is now 8.3%, while Ocado now holds 1.9%.
Tesco enjoyed its largest monthly share gain since December as its hold of the market rose by 0.8 percentage points to 28.4%. This was driven by sales growth of 7.4% compared to last year.
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