UK grocery inflation has slowed to 3.3% in January, the first decline in six months, alleviating some strain for consumers amid rising costs. This decrease is attributed to fierce competition among retailers, leading to a surge in promotional activities, with discounts comprising 27.2% of supermarket sales. Own-label products, especially premium lines, reached record sales levels. Despite overall inflation easing to 2.5%, grocery sales growth remained low at 2.8%, suggesting consumers are increasingly focused on budget options. Lidl experienced the highest growth, while Tesco gained market share in a challenging retail environment.
UK grocery inflation has slowed down for the first time in six months, dropping to 3.3% in January from 3.7% in December, providing relief amidst cost-of-living pressures.
Promotions surged in supermarkets, with discounted sales rising to 27.2% of total sales for the four weeks ending January 26, revealing intense competition among retailers.
Fraser McKevitt from Kantar noted that supermarkets offered numerous discounts this new year, leading to a year-on-year spending increase of £274m on promotions.
While UK inflation eased to 2.5% in December, grocery sales rose only 2.8%, indicating that consumers are likely prioritizing budget-friendly options.
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