In October, despite rising grocery prices Inflation, UK households continued shopping at record levels, pushing supermarket sales to a new high.
Rising Food Price Inflation Doesn’t Deter UK Consumers as Supermarket Visits Hit Record Levels
By Chourouk Derkaoui
Published on 12 November 2024 16:45
UK grocery prices rose in October, but British households continued to shop record numbers of times, boosting supermarkets' sales to a new high for the year. Despite the price increases, supermarkets enjoyed their busiest month since lockdown. Analysts noted that consumers are spending more on seasonal goods and holiday extras than in 2021.
Inflation Creeps Up as Households Increase Supermarket Trips
- Grocery Price Inflation: Up 2.3% in October, compared to 2% in September.
- Total Grocery Sales: £11.6 billion over the four weeks to November 3.
- Shopping Frequency: 480 million supermarket trips logged in October, a four-year-high.
Fraser McKevitt, head of retail and consumer insight at Kantar, described October as “the busiest month for supermarkets since March 2020,” with the average household making slightly over four shopping trips per week.
Halloween and Early Christmas Shopping Boost Seasonal Sales
As Halloween approaches, consumers have splurged in October, with 3.2 million households spending on pumpkins. Confectionery sales desk to year earlier’s £525 million. As Halloween preparations led to overall spending, chocolates recorded a 13% jump in sales, while sweets rose by 7%.
Early holiday stocking stats:
- 648,000 shoppers purchased a Christmas cake in October.
- 14.4% of households picked up mince pies.
McKevitt noted, “Christmas ads may seem early to some, but the data shows that consumers are stocking up well in advance.”
Ocado and LIDL Lead the Growth Among Retailers
Retailer Performance Highlights:
| Retailer | Sales Increase | Market Share |
|---|---|---|
| Ocado | +9.5% | Highest growth (online-only) |
| Lidl | +7.4% | Fastest-growing physical store |
| Tesco | +4.6% | 27.9%, up 0.6 points |
| Sainsbury's | +4.4% | 15.5% |
| Morrison's | +2.4% | Outpaced market average |
| Asda | -5.5% | 12.5% |
Looming Tax Rises Prompt Concern From Leading Retailers
The big grocery chains are worried about tax hikes after the big jump in sales. Asda, Sainsbury’s, and Marks & Spencer have all raised alarms about the effect of employer tax rises in the Budget.
Asda has warned that the new taxes will put upward pressure on inflation and expects an additional cost of £100m. Sainsbury’s expects a £140 million rise whilst Marks & Spencer expects a £60 million rise, which could increase further due to rising minimum wage requirement.