Falling food prices have impacted Waitrose sales, with the retailer reporting just 0.2% growth year on year for the week ending 21 February, excluding fuel sales.
This means that despite sales volumes and customers numbers rising, deflation is “having a drag effect” on its turnover, the retailer said.
These results follow the news last week that food price deflation accelerated during January. Waitrose said the impact of this is most noticeable in carrots, costing £1 last year but 60p now. Broccoli prices have also more than halved over the last year, down to £1.40 per kg from £2.90.
The retailer said its strong performance this time last year was also making it hard to report good year on year sales growth. Compared with the same period in 2013, sales excluding fuel have actually grown 7.1%.