FDBusiness.com

UK Grocery Market Enters Deflation

 Breaking News
  • Greencore to Divest US Business in $1 Billion Deal Greencore Group, the Irish and UK convenience food business, has agreed to sell its entire US business to an affiliate of Hearthside Food Solutions for US$1.075 billion (£817 million) on a cash and debt-free basis. Hearthside is a major US contract food manufacturer with a heritage in US food industry outsourcing. The disposal will leave [...]...
  • The Macallan’s Pioneering New Distillery Installs Flowcrete UK Flooring The new distillery for luxury whisky brand The Macallan has installed a variety of Flowcrete UK floors to create surfaces that would reflect its visual identity and maintain the functional properties required to produce this iconic Scottish spirit. When Edrington, the international spirits group that owns The Macallan, decided to build a £140 million facility to meet increasing global [...]...
  • New Pearl Range Launched to Help Reduce Risk of Cross Contamination Single use glove specialist Unigloves has launched the brand new 15-glove Pearl Colour System nitrile gloves range, helping organisations across the food sector more effectively manage cross contamination risks. The expanded range, combines high quality food handling approved, AQL 1.5 medical grade, powder-free nitrile gloves available in a range of colour finishes – including those [...]...
  • Signed Sealed Delivered With the increased customer focus on postable items such as confectionery, drinks and gifts, UK plastic bottle manufacturers Measom Freer have developed their very own Post Bottle (Ref 6143). With a flat rectangular shape, the bottle can easily be boxed and posted through standard letterboxes, fitting the UK large letter dimensions. Made from clear PVC, which [...]...
  • Irish Distillers to Invest €150 Million in Sites in Cork and Dublin Irish Distillers has announced investment of over €150 million in its sites in Cork and Dublin to meet demand for its products as the Irish whiskey renaissance continues apace. This is accelerated by the continued growth of the company’s flagship Jameson brand, which is now in double or triple-digit growth in more than 80 markets [...]...

UK Grocery Market Enters Deflation

UK Grocery Market Enters Deflation
October 23
09:47 2014

The latest grocery share figures from Kantar Worldpanel, for the 12 weeks ending 12 October 2014, show that like-for-like prices have declined by 0.2%, pushing the UK grocery market into deflation.

Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel explains: “While the supermarkets are battling it out on price, the real winners are consumers. Extensive price cutting by some supermarkets in a bid to win the price war means that customers are saving on everyday items such as vegetables and milk.”

He continues: “While price is a key battle ground among the big four, at the top end of the market Waitrose secured a record grocery market share of 5.2%. Impressively, it has boosted its sales by 6.8% over the past year, continuously growing its sales every month since March 2009.”

Meanwhile at the opposite end of the market, Aldi’s growth slowed slightly compared to recent months, but sales were still up 27% versus last year resulting in a market share of 4.8%. Lidl’s sales grew by 18%, with its market share standing at 3.5%.

Fraser McKevitt concludes: “We are seeing clear polarisation of the market with both the premium and discount ends of the market gaining share, while the mainstream grocers continue to be squeezed in the middle. Asda has again emerged as the winner among the big four, growing sales ahead of the market, up 1% over the past year, boosting its share to 17.3%. Tesco is yet to see substantial improvement, however it seems it may be turning a corner as sales are down 3.6%, which is the grocer’s best figure posted since June. Meanwhile both Sainsbury’s and Morrison’s sales slipped back, down 3.1% and 1.8% respectively.”

Grocery inflation has seen its thirteenth successive fall and now stands at -0.2% for the 12 week period ending 12 October 2014. This means shoppers are now paying less for a representative basket of groceries than they did in 2013. This is the another record low since Kantar Worldpanel began recording GPI in October 2006 and reflects the impact of Aldi and Lidl and the market’s competitive response, as well as deflation in some major categories including vegetables and milk.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • October 18, 2018Future Food-Tech London - Marketing Partnership
  • October 21, 2018Int'l Food Products Exhibition (Sial)
  • October 25, 2018Italian Espresso Coffee Show (TriestEspresso Expo)
  • October 25, 2018Finnish Food Fair
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements