Supermarket shoppers facing £180 a year increase amid cost of living squeeze

UK consumers face paying an extra £180 ($243) a year for their shopping basket on average as inflation pushes up the cost of groceries, industry figures show.

Grocery prices in the four week to 23 January rose by 3.8%, according to research firm Kantar. Prices are rising fastest for fresh beef and poultry, savoury snacks, crisps, skincare and cat food but are falling for fresh bacon, vitamins and beer.

The higher prices add to the cost of living surge facing households with consumer price inflation in December recorded at the highest level since 1992 and expected to climb even further this April as energy bills go up.

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“Prices are rising on many fronts, and the weekly shop is no exception,” Fraser McKevitt, head of retail and consumer insight at Kantar, said.

“Like-for-like grocery price inflation, which assumes that shoppers buy exactly the same products this year as they did last year, increased again this month.

“Taken over the course of a 12-month period, this 3.8% rise in prices could add an extra £180 to the average household’s annual grocery bill.

“We’re now likely to see shoppers striving to keep costs down by searching for cheaper products and promotions. Supermarkets that can offer the best value stand to win the biggest slice of spend.”

Supermarket sales fell by 3.8% over the 12 weeks to 23 January, according to Kantar, because of a tough comparison with the start of 2021, when coronavirus lockdowns boosted shopping, but grocery spending remains 8% higher than pre-pandemic times.

Market leader Tesco (TSCO.L) again outperformed its big four rivals with a year-on-year sales decline of 1.9% over the 12 weeks.

Sainsbury's (SBRY.L), Asda and Morrisons saw sales fall 4.8%, 5.3% and 8.5% respectively.

While Tesco's market share moved up 0.6 percentage points to 27.9%, marking a full year of gains, its three biggest rivals all lost share.

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McKevitt added that the end of lockdown rules and a return to the office means pre-pandemic shopping patterns are starting to return.

“Since the first lockdown in March 2020, shoppers have been buying in bulk and visiting the supermarket less often,” he said.

“But basket sizes are now 10% smaller than this time last year, hitting their lowest level since the beginning of the pandemic, while footfall increased by 5% as every major retailer was busier in their stores.”

Londoners changed their habits the most, Kantar said, with take-home sales of food and drink down 11%.

Online purchases were down 15% year-on-year, albeit at 12.5% of all grocery spending still represented twice the share of the market than before COVID struck.

There was also evidence of people scrubbing up, as the work from home directive ended and socialising increased. Razor blade sales rose by 14%, while spending on deodorant increased by 20%.

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