Grocery price inflation and market growth drop

Grocery price inflation falls
Grocery price inflation falls as market growth tails off
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Competitive pricing of staple items such as milk and bread has driven inflation to the lowest level since October 2006.

The latest grocery share figures from Kantar Worldpanel show grocery price inflation has fallen for the tenth consecutive period and now stands at 0.4% - the lowest level since measurement began. As a result, market growth has fallen to 0.9% - the lowest figure for 10 years.

The figures reflect the impact of Aldi and Lidl and the market’s competitive response, as well as deflation in major categories such as bread, milk and vegetables.

Aldi chases Waitrose in market share

Edward Garner, director at Kantar Worldpanel, said: “Aldi’s 32% growth rate has lifted its market share to 4.8%; this is a new record for the retailer and means it has nearly caught up with Waitrose on 4.9%. Similarly, Lidl sales have grown by nearly 20% and it has held onto its record share of 3.6%.

“Waitrose has continued to resist pressure from the competition, testament to its policy of maximum differentiation, and has grown sales by 3.4%. This figure is well above the market average and thereby has lifted its market share.”

Among the big four grocers, both Asda and Sainsbury’s have held onto their market shares of 17% and 16.6% respectively. Conversely, Tesco and Morrisons have recorded losses with sales for both outlets declining by 3.8% compared with this time last year.

Iceland has posted a small drop in sales for the first time since 2005, but has retained its 2% share.

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