UK shoppers could face £271 rise in annual food bills – Research

The average food bill in UK could increase by £271 this year as prices continue to rise, research suggests. Grocery prices were 5.9% higher in April than a year ago, the biggest increase since December 2011, according to research company Kantar.

It said shoppers were turning to discount retailers Aldi and Lidl as pressures on budgets grows. Supply chain issues, the Ukraine war and rising raw material costs are all contributing to soaring food prices.

Fraser McKevitt, head of retail and consumer insight at Kantar, said: “The average household will now be exposed to a potential extra £271 per year.

“A lot of this is going on non-discretionary, everyday essentials which will prove difficult to cut back on as budgets are squeezed. We’re seeing a clear flight to value as shoppers watch their pennies.”

Aldi was the fastest growing retailer during the period the data covers, with its sales increasing by 4.2% over the 12 weeks to 17 April. This was closely followed by Lidl, which was up 4%.

More than one million extra shoppers visited the two retailers respectively over the period compared with this time last year, with both achieving record-breaking market shares, according to Kantar.

Tesco was the only other retailer to increase its market share, growing by 0.3 percentage points to 27.3% of total grocery sales.

Sainsbury’s now accounts for 15% of the market, followed by Asda at 14.1% and Morrisons at 9.5%. The figure for Aldi stands at 8.8%, while Lidl is at 6.6%.

Supermarkets are facing a fierce battle for customers as the soaring cost of living hits household budgets.

On Monday Morrisons and Asda, who have both been losing customers to Aldi and Lidl, said they were cutting prices on hundreds of products.

UK prices are rising at their fastest rate for 30 years, with increased energy, fuel and food costs all contributing.

Kantar said food prices were rising fastest in markets such as dog food, fresh lamb and savoury snacks, but were falling in spirits.

It said there was also evidence of some customers stocking up on certain products due to limited availability and increased prices linked to the war in Ukraine.

Last weekend some supermarkets introduced limits on how much cooking oil customers are able to buy, with supplies being hit by the war.

The majority of the UK’s sunflower oil comes from Ukraine and disruption to exports has led to some shortages and an increased demand for alternatives.

Kantar said the cooking oil market grew by 17% in April, with sunflower oil up 27% and vegetable oil up 40%.

Meanwhile, for the first time since the pandemic began supermarket sales are falling – by 0.6% compared with two years ago, Kantar said.

However, this compares with the start of the first national lockdown in the UK, when only essential shops like supermarkets were allowed to open.

Kantar said the easing of Covid restrictions, with many returning to the office, as well as restaurants and pubs, may also have had an impact.

In the 12 weeks to 17 April, supermarket sales fell by 5.9%, while over the latest four weeks they fell by 4.1%.

Online grocery sales were also down by almost 15% compared with 2021.

“It is to be expected that sales are down compared with last year when restrictions were still in place,” Mr McKevitt said.

“While the number of trips we’re making to the supermarket has remained steady this year, people aren’t buying as much when in store and the average basket size has dropped by 4.5% to £22.39.”

Source: bbc.com