British shoppers struggle as grocery prices surge

Many British shoppers struggle as grocery prices surge

A quarter of Britishers are struggling financially as they find it challenging to buy fresh food amid inflation at the highest level as the pound weakens and importing from the EU gets more expensive.

As per the British Retail Consortium (BRC), shop price inflation rose from 8% in January to 8.4% in February due to soaring food costs. Fresh food prices rose 16.3% due to poor weather conditions in southern Spain and north Africa, as food shortages combined with price increases by farmers in the UK and Netherlands.

The head of retail and consumer insight at the data analytics firm Kantar, Fraser McKevitt, stated that many were buying more supermarket own-label goods and visiting Aldi and Lidl more often for the discounts they offer.

According to McKevitt, this is “a trend that shows little sign of stopping,” as compared to branded products, which saw a 4.6% increase in sales in February, and own-label lines saw a 13.2% increase.

Inflation in groceries reached a new level, including the cost of basic items like milk, eggs, and margarine, adding pressure to households that are already affected by high energy costs and mortgage rates.

As per McKevitt, sales were almost up by 27% at Aldi, the fastest-growing supermarket chain in the UK, followed closely by another supermarket chain, Lidl, with a growth of almost 25%. Compared to the rest of the supermarket chains, they are not doing any good due to inflation. Morrison’s fell by 1% as it struggled, whereas Waitrose saw encouraging sales after nearly 18 months.

As families have changed their shopping behavior, buying less to limit their bills, the overall UK grocery market rose by 8.1%.

The chief executive of Ocado, Tim Steiner, whose sales increased 7.6% in three months, per Kantar, claimed that grocery stores benefited from changing behavior as individuals increasingly cooked at home rather than eating out.

Many couples followed Steiner’s logic for the Valentine’s Day treat; steak sales increased by a quarter in supermarkets in the seven days to February 14 compared to the previous week, while chilled ready-meals sales increased by nearly one-third. Sales of sparkling wine doubled.

- Published By Team Timeswire

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