UK supermarket shoppers hit by price hike amid supply crisis | Supermarkets

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Supermarket prices rose 1.3% this month, marking a significant increase in grocery price inflation as supply chain woes begin to affect shoppers.

The price increases were largest in salty snacks, cat food, and packaged cakes and pastries according to analysts at Kantar, who said the pace of inflation in the month to September 5 was more that tripled the 0.4% figure for August, which was itself the first month of price hikes since April.

The figures come after several forecasts by business leaders of a fall increase in the cost of living triggered by the Covid and Brexit disruptions, including a shortage of delivery drivers.

Consumer goods manufacturers such as Nestl, Procter & Gamble and Unilever have said they will be forced to raise their prices, and retailers predict the cost of filling a cart will rise further if the disruption continues.

Fraser McKevitt, head of retail and consumer insight at Kantar, said: For much of 2021, buyers have been shielded from price increases, with more sales on sale this year compared to 2020 But over the past month, only 27.5% of spending was made on offers. Other than the early days of last year’s lockdown, this is the lowest level in the 15 years we’ve been tracking this data.

The price hikes come amid a drastic shift in buyer behavior as schools resume after the summer break and many workers return to the office.

Online grocery sales fell to 12.2% of the overall grocery market in September from 13% four weeks ago, the lowest level since May 2020, as people start spending more in shops. The average online store is now worth 78.28, almost 17 below its peak at the start of the pandemic.

McKevitt said this reflected the move away from weekly or fortnightly department stores in favor of smaller frequent trips and a return to restaurant meals and ready meals as life gets busier. Sales of refrigerated ready meals increased 11% in September.

Sales of take-home groceries, rather than a quick bite to eat, fell nearly 2% in the UK in the three months to September 5 compared to strong activity in the UK. last year when restaurants were closed for part of the period. Only Waitrose and Tesco increased their sales in a changing market.

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There are big lifestyle changes on the horizon with commuters returning to work and back to school this fall, and we expect that to have an impact on how people make their trips. purchases, McKevitt said.

In the first week of September, we measured the highest year-round supermarket footfall outside of Easter, with more people picking up items as they go. This suggests a hint of change and could see shoppers skip the department store in favor of more frequent top-up purchases.

But we shouldn’t expect to go from habits learned during lockdown straight to pre-Covid models overnight. Chances are, the needle will settle somewhere in between.

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