Insight: supermarket sales up 3.9% as grocery inflation eases off

The figures from Kantar Worldpanel covering the 12 weeks ending 16 July, show that June’s hot weather was a boost for UK grocers, with sales particularly buoyant around the hottest June day for 40 years.

Ice cream sales were up 34% in June, while sales of sun care products increased by 40% year-on-year. Over the 12 week period, shoppers spent an additional £158 million on alcohol. Fruit and vegetable sales were also up, rising by 7%.

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Commenting on the market, Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said: “Robust market growth this year has been boosted by higher grocery inflation, but consumers will be pleased to hear that price rises are no longer accelerating. Like-for-like inflation now stands at 3.2%, the same rate of increase as this time last month. One year on from the EU referendum – which had a marked impact on the price of imported groceries – hard-pressed shoppers could soon start to feel upward pricing pressures ease.”

During the period, Lidl was the UK’s fastest growing supermarket with a sales increase of 19.4%….