UK consumers are opting the discount stores in increasing numbers because the price of food is reaching its highest in the past decade, amid an increasing cost of living.
Aldi has taken the largest share of the market for groceries up to now and Lidl reached its highest point in the past when the price of groceries climbed to 5.2 percentage in March, the highest rate ever since the beginning of April, as per the most recent data from analysts at Kantar.
Lidl has confirmed its position as the sixth-largest UK supermarket chain ahead of Co-op with 6.4 percent market share. Aldi has reached 8.6 percent, just 1percent behind the country’s fourth largest chain, Morrisons.
Kantar reported that the prices were increasing fastest on pet food as well as snacks like crisps, while decreasing for other items such as bacon, fresh and cooked.
Price inflation in food, caused by the price hikes of staple commodities like cooking oil and wheat along with energy as well as packaging is forcing consumers to make changes to their routines as the price increases spread into the shelves of supermarkets. Consumer price inflation is currently being at 6.2 percent – the most rate in the past three decades – households with budgets that are tight are looking for ways to save money on essentials.
Customers are increasingly buying brands that are owned by supermarkets instead of well-known brands, with more than half the spending on such products 50.6%. 50.6 percent – an increase from less than half of a year before.
Making your own pasta was a popular choice in those Covid lockdowns, seems to be more popular with the amount of flour sold increasing by 28% in March 2019 while sales of dry pasta are increasing by 17% from levels prior to the pandemic.
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Fraser McKevitt, the head of consumer insight and retail at Kantar McKevitt stated: “More and more we’re going to see shoppers and retailers adopt measures to reduce the price of groceries.”
Aldi along with Lidl were the only major chain stores to see sales increase over the 12-week period from 20 March, after recovering from a dip in the initial phase of the epidemic when there was greater demand for deliveries to homes and less enthusiasm for shopping.
Morrisons as well Asda were the worst hit by their changing shopping habits, possibly losing sales as customers who are looking for bargains turned to Morrisons and Asda While Tesco was the most successful of the big chains, sales were still lower by 5.2 percent in the three months.
Total spending in supermarkets decreased by 6.3 percent in the 12 weeks leading up to 20 March, compared to the same time a year ago when the return of the office and the reopening of bars, restaurants, and cafes reduced the demand for cooking at home.
Independent retailers were among the most affected with sales dropping 13.4 percent after shoppers returned to the big chains following an increase in local shopping during lockdowns.