Whilst the rest of the economy continues to cough and splutter, this growth in the grocery retail market has made Asda and Sainsbury’s the best performers in the top rung of supermarkets. They enjoyed sales growth of 6.2% and 4.6% respectively, compared with the same period the previous year.
It is thought that the better weather in July and an Olympic frisson have helped to boost sales figures at supermarkets, helped along by the lowest grocery price inflation for around 18 months (rising 3.2%, according to Kantar).
Lower in the market, Aldi enjoyed a 26% increase on the same period the year before, and Lidl 11.8% growth. Iceland dominated the frozen food sector with year-on-year growth of 7%. The figures suggests that whilst grocery inflation is slowing down, some consumers are looking to rein in spending and seek better value from supermarkets.
It seems that when economic times get tough, the British like to stay at home and eat their way out of recession…