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Grocery sales growth rose by 3.8% in the four weeks to 4 August as food inflation edged back upwards for the first time in more than a year.
According to the latest Kantar grocery market share figures, take-home sales at the grocers rose by 3.8% in the four-week period year on year, compared with growth of 2.2% last month and just 1% in June.
Growth was boosted by grocery price inflation increasing for the first time since March 2023 to 1.8%, up from 1.6% last month.
Prices are rising fastest in markets such as vitamins/minerals/supplements, fruit juices & drinks and chocolate confectionery, and are falling fastest in toilet tissues, bottled colas and dogfood.
Fraser McKevitt, head of retail and consumer insight at Kantar, commented: “Having reached its lowest rate in almost three years in July, August saw inflation nudge up again slightly.
“While this is noticeable following 17 straight months of falling rates, it actually marks a return to the average levels seen in the five years before the start of the cost of living crisis.”
Kantar said prices were now rising across 182 product categories, as the costs in 89 others fall.
McKevitt added: “With this kind of pricing spread, shoppers will find that the type of product they’re putting in their baskets will really dictate how much they pay. They’re continuing to take advantage of the wide range of promotions being offered by the grocers to help keep the price of shopping down. Spending on deals rose by 15%, while sales of products at their usual price saw no increase.”
In terms of individual retailers, Sainsbury’s was the fastest-growing of the mults, up 5.2% followed by Tesco at 4.9%.
Morrisons remained in growth of 1.4%, but Asda was down 6% in the period.
Lidl was the fastest growing physical grocer overall, with sales up 7.8%, while fellow discounter Aldi saw modest growth of 0.5%.
Elsewhere, Waitrose was up 4.5% and Iceland 4.1%, while Co-op sales fell back 1.8%.
Sales rose by 11.3% at online-only retailer Ocado, continuing its six-month run as the fastest-growing grocer.
Overall grocery growth was also boosted by spending on drinks and snacks during the European Football Championships and the Olympics, with sales of wine up 35%, while nuts increased 60% and crisps rose by 10% on the Friday of the Olympics opening ceremony in Paris
Sales of burgers also leapt by 32% compared with the same time last year, as Britons finally lit the barbecue.
Morning update
Tate & Lyle has appointed Sarah Kuijlaars to the position of chief financial officer with effect from 16 September 2024.
Kuijlaars has previously served as CFO of De Beers Group and Arcadis. Prior to that, she was deputy CFO at Rolls-Royce Holdings and held a number of senior finance leadership roles during a 25-year career at Shell.
She succeeds Dawn Allen, who is leaving Tate & Lyle to take up the position of chief financial officer of Haleon. Allen will step down as CFO on 15 September 2024 and will remain with the company until late October to ensure a smooth transition.
CEO Nick Hampton commented: “Sarah is an outstanding addition to our executive team and I am delighted to welcome her to Tate & Lyle. Her proven track record of financial leadership in large and dynamic global businesses will prove invaluable to us as we enter the next phase of our growth agenda as a focused food and beverage solutions business.”
Kuijlaars added: “I am excited to be joining Tate & Lyle at such an important time in the company’s development. I look forward to working with Nick and the senior leadership team to continue to support Tate & Lyle’s customers across the world, and to deliver on the company’s growth ambitions.”
On the markets this morning, the FTSE 100 us up another 0.1% to 8,219.9pts.
Risers so far include Glanbia, up 6.4% to €18.03, Science in Sport, up 4.7% to 24.6p and Ocado, up 2% to 384.4p.
Fallers include Naked Wines, down 5.6% to 51p, McBride, down 2.9% to 119.5p and Marks & Spencer, down 2.2% to 316.1p.
Yesterday in the City
The FTSE 100 closed up yesterday 0.5% to 8,210.3pts.
Risers yesterday included Naked Wines, up 5% to 54p, Science in Sport, up 4.9% to 23.5p, Bakkavor, up 4.4% to 153p, Deliveroo, up 1.9% to 150.9p, Greencore Group, up 1.8% to 177p, Fevertree, up 1.8% to 895p and AG Barr, up 1.5% to 628p.
The day’s fallers included Glanbia, down 5% to €16.94, B&M European Value Retail, down 2.2% to 444.6p, Nichols, down 2.2% to 1,125p, Greggs, down 1.4 to 3,078p, SSP Group, down 1.4% to 161.2p and Haleon, down 1% to 373.2p.
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