Food price inflation jumped to 3.7% last month, the highest level since March, helping fuel a bumper season for supermarkets, according to Guardian, UK.
Sales at the big grocery chains were up 2.1% over the four weeks to 29 December compared with a year before, according to the analysts Kantar. However, that rise was flattered by food price growth, which jumped more than one percentage point from 2.6% in November.
Inflation has been gradually increasing since July, but took a big step up last month led by confectionery, skincare and juices, taking household spending on festive take-home groceries to a record high of £460 on average.
Kantar also looked at trading in the three months to the end of December. The market leader, Tesco, increased sales of take-home groceries by 5% over that period, taking its market share to more than 28%.
The UK’s number two, Sainsbury’s, increased sales by 3.5% while the discounter Lidl was up 6.6% and Marks & Spencer 8.7%, with all benefiting from a collapse in sales at Asda – which was down 5.8% – the only faller among the big grocers.
The disappointing performance from the privately owned chain indicates the scale of the challenge for the new chair, Allan Leighton, who has been tasked with turning around Asda’s performance. The retailer is struggling to tackle IT issues and heavy price competition under the weight of hefty debts taken on to fund a £6.8bn buyout in 202, according to Guardian.
Fraser McKevitt, the head of retail and consumer insight at Kantar, said: “It was a solid Christmas at the supermarkets with sales surpassing £13bn during the four weeks of December for the first time ever, showing people were clearly in the mood to celebrate and spend.
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