Grocery inflation edges up as sales of essentials jump for ‘Be Ready’ campaign

Grocery price inflation edged up again in October as sales of essentials jumped following the launch of the Government’s Be Ready campaign, figures show.

Supermarket prices are now 2.6% higher than a year ago, up from 2.5% last month, data from Worldpanel by Numerator shows.

Fraser McKevitt, head of retail and consumer insight at Worldpanel, said: “While prices are rising at a slower rate than at the beginning of the year, the direction of travel has changed.

“Household budgets have already taken a hit after the latest increase to the energy price cap arrived with the cold weather in October, and shoppers will be keeping a close eye on prices at the tills this winter.”

Sales of essential supplies jumped from October 22 as shoppers responded to the Be Ready public awareness campaign encouraging households to prepare for up to three days in the event of disruption to essential services.

In the 10 days after the campaign was launched, sales of hand sanitiser increased by 83% compared to the corresponding period last year, while sales of bottled water rose 67% and tinned and jarred goods were up 37%.

The number of people buying tinned meat each day after the launch of the campaign rose by 43% – equivalent to an extra 400,000 shoppers a day – yet the typical amount bought remained at about 500g, suggesting households are gradually stocking their cupboards.

Sales of pumpkins were up 10% year on year as households also prepared for Halloween (PA)

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Mr McKevitt added: “Shoppers clearly took notice of the Be Ready campaign, but this wasn’t panic buying, with less than a third of households buying bottled water in October.

“Growth came from more people adding the recommended items on the Government’s checklist to their weekly shop, not from shoppers piling their trolleys high, which is very much in line with what the Government wanted households to do.”

Sales of pumpkins were up 10% year on year as households also prepared for Halloween, while sales of tubs of sugar confectionery were up 28% compared to last year.

Sales at online-only grocer Ocado grew by 12.3% over the 12 weeks to November 1, to reach a record market share of 2.3%.

Marks & Spencer, which part owns the Ocado retail business, separately increased grocery sales through its stores over the same period by 14.6%.

Spending through the tills at Lidl increased by 6.6%, resulting in a market share gain of 0.4 percentage points, the greatest of any retailer, handing it 8.6% of all sales.

The third retailer to increase share compared with last year was Waitrose, moving up to 4.5% from 4.4% as sales rose by 2.2%.

Sales at Morrisons rose by 2%, slightly ahead of the market, delivering market share of 8.3%, while Tesco and Sainsbury’s took a 27.8% and 15.5% share respectively.

New Asda chief executive David Potts started his role with a market share of 11.3%, as more than half of households shopped in its stores or online over the last three months.

Sales were up by 0.4% at Aldi, Britain’s fourth largest grocer, taking share to 10.4%, while Co-op’s sales were 0.7% higher than a year ago to give it 5.3% of the market.